Union govt. has clarified that settlements in derivatives will attract same Securities Transaction Tax (STT) as that levied in the equity cash segment.
About:
STT is levied on every purchase or sale of securities that are listed on the Indian stock exchanges. This would include shares, derivatives or equity-oriented mutual funds units.
It was introduced by the then Finance Minister P Chidambaram, in the Union Budget 2004-05, to stop tax avoidance of capital gains tax.
The rate of STT that is deducted is determined by the central government, and it varies with the type of transaction and security.
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