Securities Transaction Tax (STT) Reduced

The Finance Bill 2013-14 proposes reduction in the rates of Securities Transaction Tax (STT) in respect of certain transactions. Presenting the Union Budget in the Lok Sabha today, the Finance Minister Shri P.Chidambaram proposed the following reductions in the rates of STT:-

Equity futures: From 0.017 to 0.01%

MF/ETF redemptions at fund counters: From 0.25 to 0.001%

MF/ETF purchase/sale on exchanges: From 0.1 to 0.001%, only on the seller

The Finance Minister noted STT has a stabilising effect on transactions and he had proposed reductions in the rate of tax taking note of the changes and shifts in the market.

Source : Equity Bulls

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