Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating


Taxman proposes to exempt genuine equity deals from STT

Author: IANS/Tuesday, April 4, 2017/Categories: Stocks

Taxman proposes to exempt genuine equity deals from STT

New Delhi, April 4 (IANS) - The Income Tax Department has specified a list of equity share sale transactions that will have to comply with the latest Budget provision and pay long-term capital gains tax if Securities Transaction Tax has not been paid.

"It is proposed to notify that the condition of chargeability to STT (Securities Transaction Tax) shall not apply to all transactions of acquisitions of equity shares entered into on or after the first day of October, 2004 other than the specified transactions," the Central Board of Direct Taxes (CBDT) said in a draft notification on Monday, seeking stakeholder comments by April 11 to finalise the proposal. Indian stock market transactions attract STT in the range of 0.017-0.125%.
The specified transactions include: 

  • Purchase of shares of a listed company that are not frequently traded through preferential issue, 
  • Purchase of listed equity share in a company not entered through a recognised stock exchange,
  • Acquisition of shares of a company during the period it was delisted from recognised stock exchanges

"Frequently traded shares means shares of a company, in which the traded turnover on a recognised stock exchange during the 12 calendar months preceding the calendar month in which the transfer is made, is at least 10% of the total number of shares of such class of the company," the CBDT said. The proposal comes after the Budget 2017-18 announcement to exempt from long-term capital gains tax only if STT had been levied on purchase of shares and other genuine cases such as public offers.

Print Rate this article:

Number of views (149)/Comments (0)



Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.