NSE reduces STT rate in capital markets segment
National stock exchange scaled down the securities transaction tax in the capital markets segments; in the futures segment, the tax now stands at 0.01 percent from 0.017 percent.
May 25, 2013 / 04:03 PM IST
Leading bourse national stock exchange (NSE) today said it will scale down securities transaction tax (STT) in the capital market segments from June 1.
The revision is as per the Finance Act 2013, which received Presidential assent on May 10. Introduced in 2004, STT is levied on the sale and purchase of equities.
Also read: Reduction in STT beneficial for small investors
In the case of sale of securities in futures segment, the tax has been revised downward to 0.01 percent, from 0.017 percent.
"We would like to inform you that as per the Finance Act 2013, which received the Presidential assent on May 10, 2013, rates of levy of STT with effect from June 1, 2013, are revised," NSE said in a circular.
Regarding the sale of a unit of an equity oriented fund, where the transaction is entered into on a recognised bourse, and the contract for the sale of such share is settled by the actual delivery or transfer of such share, STT has been revised downward from 0.1 per cent to 0.001 per cent.
In case of purchase of a unit of an equity oriented fund, where the transaction is entered into in a recognised stock exchange and the contract for the purchase of such unit is settled by the actual delivery, NSE has done away the tax from the existing 0.1 percent.
The exchange said that in case of other transactions, there would not be any change in STT rate