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Stock Investing in India – What is Securities Transaction Tax

Security Transaction Tax is levied on transactions happening on recognized stock exchanges in India. Read more about the tax rate and its applicability.<br>

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Stock Investing in India – What is Securities Transaction Tax

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  1. Stock Investing in India – What is Securities Transaction Tax Tax evasion is a deep-rooted scourge among many taxpayers. Attempting to avoid paying income tax by not disclosing profits from the sale of securities is an illegal and illegal activity. This not only results in taxpayers shirking their responsibilities as citizens, but also results in a significant reduction in state coffers used for social welfare schemes. Keeping this in mind, the Indian government has introduced measures to control illegal activities, one of which is the securities trading tax. Since its inception in October 2004, the law requires investors to pay taxes on their capital gains from the stock market. This is a detailed description of the characteristics, scope and rates of securities trading tax in India. What is Securities Transaction Tax in India? Securities Transaction Tax (STT) is a tax on transactions of securities made in the stock exchange of India. Securities refer to negotiable investment instruments such as stocks, checks, bonds, any equity-related funds, etc., issued by a company or government. The main purpose of introducing STT is to curb the tendency of investors to avoid paying the appropriate income tax. Not paying taxes on your capital gains is one of the biggest investing mistakes new

  2. investors make. Check out this link for other investing mistakes you want to watch! Features of Securities Transaction Tax 1.It is a direct tax that the Central Government levies and collects. 2.Off-market share transactions do not fall under the ambit of STT. 3.The rate of STT depends on the type of security being traded and whether the transaction is a sale or purchase. 4.Sell transactions for both options and futures fall under the scope of the tax regime. Options are valued at a premium and futures are valued at the actual traded price. 5.Clearing members pay an STT, which is a collective sum of the STTs of trading members under them. Securities Transaction Tax rates in India One can trade in securities for investment purposes or for trading purposes. In both cases, the government levies STT. Also, the tax that affects stock market transactions depends on the purpose or nature of the transaction, as explained above. Investment advisors at TejiMandi help you calculate the tax you will pay on capital gains in your investment portfolio, so you don't have to fear the math again! Income from trading also attracts income tax. It is of two types: 1. Income from professional stock trading 2. Capital gains The takeaway Sale Are you looking for a simplified way of investing in stocks? The TejiMandi App is the ultimate destination for all your investment-related needs! Trusted by over 10,000 investors, Teji Mandi makes investing in stocks hassle-free and straightforward. From active portfolio management to practical analysis of stock picks, Teji Mandi ensures that you sail smoothly through your investment journey. Connect with us today to supercharge your investment portfolio!

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