Taxing issue

Lower transaction costs alone won't increase capital market activity

At a recent event marking the 25th anniversary celebrations of the National Stock Exchange, its Managing Director and Chief Executive Officer, Vikram Limaye made a strong pitch for bringing down securities transaction and compliance costs in the Indian market. Investors not only have to submit margin; they have to compute and pay a plethora of taxes, including the securities transaction tax (STT), capital gains tax, stamp duty and the goods and services tax, on every capital market transaction. In addition, companies must pay a dividend distribution tax if dividend is paid. 

Mr Limaye’s point is that all this makes India’s