Finance ministry clarifies on hike in STT on options trading
2 min readThe Finance Ministry on Friday night clarified that the securities transaction tax (STT) on options trading has been hiked by 25 per cent from 0.05 per cent to 0.0625 per cent, and never from 0.017 per cent to 0.021 per cent, saying that it was a typographical error and the rectification might be performed in accordance with the extent process of the federal government.
The STT for futures trading stays the identical, as was introduced in the amendments to the Finance Bill 2023, i.e., it has been raised to 0.0125 per cent from 0.01 per cent. The hikes in STT for each futures and options trading can be efficient from April 1, 2023.
In quick, the STT has been hiked by as much as 25 per cent on futures and options (F&O) trading as per the amendments to the Finance Bill 2023, which was handed in the Lok Sabha earlier in the day by voice vote, with none dialogue.
By effecting a hike in STT on F&O trading, the federal government goals to tax such transactions extra as turnover is larger in them.
As per the amendments, choice merchants should pay Rs 6,250 for each Rs 1 crore value of turnover as towards Rs 5,000 that’s being paid at the moment, which interprets right into a hike of round 25 per cent. Also, merchants will now must pay STT of Rs 1,250 on Rs 1 crore of turnover whereas promoting futures.
(With inputs from IANS)