Securities transaction tax

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15 August 2009 what is securities transaction tax ? when it is apply ? what rate for Purchase & sale of Share ?

Taranjit Singh

Taranjit Singh (Expert)
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15 October 2009 The Securities Transaction Tax was introduced by Chapter VII of the Finance Act (No.2) Act, 2004. STT is a tax being levied on all transactions done on the stock exchanges.

Securities Transaction Tax is applicable on purchase or sale of equity shares, derivatives, equity-oriented funds and equity-oriented mutual funds.

Taranjit Singh

Taranjit Singh (Expert)
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15 October 2009 STT is applied as following (effective from June 1st, 2005):

For transactions in a recognised stock exchange in India:
a) Purchase/Sale of equity shares, units of equity oriented mutual fund (delivery based) -- 0.10%
b) Sale of equity shares, units of equity oriented mutual fund (non-delivery based) -- 0.02%
c) Sale of derivative -- 0.01%

Sale of unit of an equity oriented fund to the mutual fund -- 0.2%

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