Page 2 - Securities Transaction Tax

Brokers to approach HC over STT on physically-settled derivative contracts

Stock brokers are approaching the Bombay High Court (HC) to seek a resolution on the impasse surrounding the levy of securities transaction tax (STT) on physically-settled derivative contracts.Brokers lobby Association of National Exchanges Members of India (Anmi) had recently moved the Securities Appellate Tribunal (SAT) to provide clarity on the issue.Currently, there is no provision in the Finance Act to tax derivative trades on physical delivery and Anmi believes that any attempt to collect the same by the National Stock Exchange of India (NSE) upfront shall become an illegal act. In a letter to the Securities and Exchange Board of India (Sebi) dated July 17, Anmi had said that the exchange should not commence physical delivery in the F&O segment unless it issues a legal indemnity to its members from any future claims made by the government of India for non-collection of STT on F&O delivery. It also noted that there is currently no law to deal with gains/losses resulting ..

Direct tax panel may suggest single tax on capital market investments

Direct tax panel may suggest ways to blunt the impact of US tax reforms

Remit excess securities transaction tax to govt in 15 days: BSE to brokers

Additional commissioner of income tax has stated that instances had come to his notice where excess STT was collected and retained by brokers and sub-brokers and was not remitted to govt account

How 'do not exercise' feature will help options traders

The differential tax treatment discouraged investors from actively participating

Tax on non-STT deals worries market

Wide ranging off-market activities could have to forgo the benefit of nil long-term capital gains tax

STT hike on options to pinch high-volume traders

The increase in STT takes effect only when one sells the option and will be charged on the premium value, not the contract value