Thursday, 28 February 2013

Current Affairs-Indian Government's Union Budget 2013-14:Securities Transaction Tax (STT) Reduced


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 per cent
MF/ETF redemptions at fund counters: From 0.25 to 0.001 percent
 MF/ETF purchase/sale on exchanges:   From 0.1 to 0.001 percent, 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. 

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