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The Finance Ministry on Friday evening 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 not from 0.017 per cent to 0.021 per cent, saying that it was a typographical error and the rectification will be done in accordance with the extent procedure of the government.
The STT for futures trading remains the same, as was announced 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 both futures and options trading would be effective from April 1, 2023. In short, the STT has been hiked by up to 25 per cent on futures and options (F&O) trading as per the amendments to the Finance Bill 2023, which was passed in the Lok Sabha earlier in the day through voice vote, without any discussion. By effecting a hike in STT on F&O trading, the government aims to tax such transactions more as turnover is higher in them. As per the amendments, option traders will have to pay Rs 6,250 for every Rs 1 crore worth of turnover as against Rs 5,000 that is being paid currently, which translates into a hike of around 25 per cent. Also, traders will now have to pay STT of Rs 1,250 on Rs 1 crore of turnover while selling futures. --IANS ans/arm ( 257 Words) 2023-03-24-19:50:03 (IANS)
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