Securities Transaction Tax
Now you will have to pay more tax on trading in the stock market. Finance Minister Nirmala Sitharaman has announced to increase the securities transaction tax on the sale of options. Earlier Rs 1700 Securities Transaction Tax was levied on selling an option of Rs 1 crore, but now Rs 2100 will have to be paid. The new rules will be applicable from April 1 in the financial year 2023-24.
During the passage of the Finance Bill in the Lok Sabha, Nirmala Sitharaman (Nirmala Sitharaman) has increased the Security Transaction Tax (STT) by 25 percent on selling futures contracts. Traders trading in futures will have to pay STT of Rs 1,250 on turnover of Rs 1 crore, which was earlier Rs 1,000. This change has been made in the Security Transaction Tax through an amendment in the Finance Bill.
Nikhil Kamath, co-founder of Zerodha, after increasing the securities transaction tax, retail investors selling or buying Nifty futures in intraday will have to pay Rs 855 or 1.7 point STT for every Nifty lot. And if he trades in 10 times more Nifty lots, he will have to pay 17 points more STT. This is apart from exchange charges, stamp duty, GST, brokerage and charges levied by SEBI.
securities transaction tax hiked by 25 percent. If an intraday retail trader buys and sells 10 lots of nifty futures, he has to pay Rs 855 in STT or 1.7 points on each Nifty lot; if he trades 10 times a day, he has to capture 17 points of a nifty move every day on Stt alone. pic.twitter.com/Pm8Ru601MS
— Nikhil Kamath (@nikhilkamathcio) March 24, 2023
Securities Transaction Tax is levied on buying and selling of shares, future-options, which was introduced in 2004. However, the decision to increase the securities transaction tax has been taken only on trading in the derivatives segment.