Despite the economic fallout of the pandemic, the collection of securities transaction tax (STT) has risen 42 percent so far in 2021-21.
STT collection between April and December 2020 is Rs 10,805 crore, as against Rs 7,574 crore in the same duration last year, Business Standard reported citing sources in the Central Board of Direct Taxes (CBDT).
The government has a target of collecting STT worth 13,000 crore this financial year, the report added.
Total tax collected from the stock market so far in FY21 is Rs 11,431 crore, after including commodity transaction tax (CTT) collection of Rs 625 crore, the report said.Also read: Exclusive | October-December quarter advance corporate tax collections 49% higher year-on-year
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
Moneycontrol could not independently verify the story.
Though benchmark indices plunged in March due to the COVID-19 pandemic, signs of economic recovery and positive news on vaccines has helped the stock market bounce back.
The S&P BSE Sensex and Nifty50 have rallied more than 70 percent each since April, and will close 2020 with double-digit gains.
Equity markets caused the tax paid on profits by mutual fund (MF) unit holders to increase by 84 percent, Business Standard reported.Companies holding units of MFs have paid taxes worth Rs 1,156 crore, much higher than Rs 625 crore the previous year, the report added.