Saturday, July 2, 2011

STT (Securities Transaction Tax)


1  What is STT?  What is its implication on being charged in the equity fund? If there is a short term loss in an equity fund and if STT is charged, can it be claimed as refund or adjusted with other gains?

4 comments:

M GEETHA said...

Dear All,

STT is the tax paid for mutual fund redemption services and it can only be claimed as your expenses of the financial year

M GEETHA
ARN 2541
IFA

Alps John said...

STT is the tax paid on all the listed (on market) security transactions. It can be claimed as your expenses only, if you have trading income and no other income.

Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under:
Transaction Rates Payable By
Purchase/ Sale of equity shares, units of equity oriented mutual fund (delivery
based) 0.125% Purchaser/Seller
Sale of equity shares, units of equity oriented mutual fund (non delivery based) 0.025% Seller
Sale of an option in securities 0.017% Seller
Sale of an option in securities where option is exercised 0.125% Purchaser
Sale of a futures in securities 0.017% Seller
Sale of unit of an equity oriented fund to the Mutual Fund 0.250% Seller

Anonymous said...

the person redemption made in mutul funds or stock on valu of money he will be charged 0.25% for the transations.

K. Sriram
Sivasri Premier

Sankar Prasath V said...

Dear All,
STT is levied irrespetive of the profit or loss for the investor. It Just like a Transaction Tax. When the investor, request for redemption STT is levied at 0.25% on the redemption value. The investor can claim this STT as expenses while filling return.

Regards,
V.Sankar Prasath.
ARN - 37058
IFA