In a major blow to the traders Nirmala Sitharaman hiked the securities transaction tax on sale of options contracts by 23.5 per cent.
According to the amendments of the Finance Bill 2023, STT on the sale of options has been increased to Rs 2,100 on a turnover of Rs 1 crore, with a 23.5 per cent hike.
What is STT?
The STT was introduced in 2004 and is levied on transactions involving various types of securities. Mutual fund transactions and all stock market transactions of equity derivatives like futures and options are liable under the STT.
Government to collect Rs 27,625 crore
The government is expecting to collect close to Rs 27,625 crore from STT in the financial year 2024. This will be 10.5 per cent more than the revised budget estimate of the last financial year where the projected collection was at Rs 20,000 and revised to Rs 25,000 crore. In the financial year 2022 the government collected Rs 23,191 crore.
However many traders believe that this may not have a major impact on traders as those working with huge margins may not see a major impact.
