New Delhi:
Finance Minister Nirmala Sitharaman on Monday introduced an amendment to the Finance Bill in Rajya Sabha to correct the figures regarding the rate of Security Transaction Tax (STT) to be levied on the sale of options and futures.
The amended Finance Bill 2023 by correcting STT rate has been returned to Lok Sabha, sources said.
The amended bill is likely to be passed by Lok Sabha today or tomorrow and after that the budget exercise would be completed. The Lok Sabha has been adjourned till 4pm.
The Finance Bill 2023, passed by the Lok Sabha on Friday, proposes to increase the Securities Transaction Tax on options from 0.05 percent to 0.0625 percent and on futures contracts from 0.01 percent to 0.0125 percent.
After the Lok Sabha passed the Finance Bill, which has 64 official amendments, the Ministry of Finance issued a statement saying that there was a typographical error in the amendments regarding the change in STT on options trading.
The error, said the Ministry of Finance, will be rectified in accordance with the comprehensive procedure of the Government of India.
Under the changes, the STT on options has been increased from 0.017 percent to 0.021 percent.
“In the case of STT, it is proposed to change the rate from 0.05 percent to 0.0625 percent. There was a typographical error that will be corrected,” the ministry said.
In percentage terms, the STT for the sale of futures has been increased from 0.01 percent to 0.0125 percent and in the case of options from 0.05 percent to 0.062 percent.
Traders in the futures segment will now have to pay STT of Rs 1,250 on Rs 1 crore of sales against the earlier levy of Rs 1,000. The new rules will take effect from the new financial year 2023-24
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