STT or Securities Transaction Tax is a tax payable by Investors & Traders to the Central Government and therefore is categorised as a Regulatory Charge.
Introduced in 2004-05, STT has helped simplify taxation on investing & trading in Capital markets in India & for investors, made it tax efficient as well.
STT is collected by the broker at the time of transaction is conducted by investor/trader. STT is applied on the value of transactions and charged to traders/investors in the contract notes issued to them by their Broker.
The government reintroduced Long Term Capital Gains (LTCG) tax in Union Budget 2018-19.
Long term capital gains exceeding Rs 1 lakh on sale of equity shares/units of Equity oriented Fund are proposed to be taxed at 10% without allowing any indexation benefit, but no decision was made on STT.
Now investor/trader will have to pay STT along with LTCG. This is a case of double taxation.
Factsheet
- Currently F&O trader is paying 30% tax and still they are paying STT.
- India only country in the world to have both STT & LTCG tax at the same time.
- Trader/ Jobber/ Arbitrager are hit very badly after the implementation of STT. There tax burden increased significantly after STT was introduced in 2004.
- Government had collected ₹ 9,000 crore from STT for the assessment year 2017-18.
- The total amount of exempted capital gains from listed shares and units is around ₹3.67 lakh crore as per returns filed for the assessment year 2017-18. This would translate into a tax collection to the tune of Rs 36,700 crore going ahead.
Government should abolish STT since they had reintroduced LTCG. Since the collection from LTCG will be way higher then STT collection.
Updates
March 10, 2018
The petition reached 100 signatures this morning. This count provides the necessary leverage to begin drafting a formal memorandum for the Ministry of Finance regarding the removal of double taxation on equity transactions.
Reached 500 supporters
March 9, 2018
Reached 100 supporters
March 9, 2018
412 Comments
It must be removed post LTCG tax as paying on transaction without even profit or loss is really narrowing net margin after taking such a high risk.
While introducing STT, Govt. had promised that NO long term capital gain would be taxed but there have keep charging both STT as well as LTCG. This is not fair. Otherwise allowed STT as expenses.
STT was introduced in place of LTCG. Now government is charging LTCG than STT should definitely go away. If you closely look at the expenses on the contract note than you will understand that government is charging more per crore of turnover than our broker. Clear loot by government.
this tax we have to pay even if we incur loss..this is illogical...abolish completely..we are already burdened with 6-7 other levies/charges/surcharges/tax/etc
Once taxed on total sale and again tax on LTCG, which is part of sale. Hence taxed twice as STT and LTGT. This is unfair, one of this should not be applicable. This is loud and clearly unfair from the principal of taxation.
Why we pay double Tex in transactionn which we did in stock market,mean buyer and seller both pay taxes to government where as in selling other properties only buyers pay texes
Thank you
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STT or Securities Transaction Tax is a tax payable by Investors & Traders to the Central Government and therefore is categorised as a Regulatory Charge.
Introduced in 2004-05, STT has helped simplify taxation on investing & trading in Capital markets in India & for investors, made it tax efficient as well.
STT is collected by the broker at the time of transaction is conducted by investor/trader. STT is applied on the value of transactions and charged to traders/investors in the contract notes issued to them by their Broker.
The government reintroduced Long Term Capital Gains (LTCG) tax in Union Budget 2018-19.
Long term capital gains exceeding Rs 1 lakh on sale of equity shares/units of Equity oriented Fund are proposed to be taxed at 10% without allowing any indexation benefit, but no decision was made on STT.
Now investor/trader will have to pay STT along with LTCG. This is a case of double taxation.
Factsheet
- Currently F&O trader is paying 30% tax and still they are paying STT.
- India only country in the world to have both STT & LTCG tax at the same time.
- Trader/ Jobber/ Arbitrager are hit very badly after the implementation of STT. There tax burden increased significantly after STT was introduced in 2004.
- Government had collected ₹ 9,000 crore from STT for the assessment year 2017-18.
- The total amount of exempted capital gains from listed shares and units is around ₹3.67 lakh crore as per returns filed for the assessment year 2017-18. This would translate into a tax collection to the tune of Rs 36,700 crore going ahead.
Government should abolish STT since they had reintroduced LTCG. Since the collection from LTCG will be way higher then STT collection.
Updates
March 10, 2018
The petition reached 100 signatures this morning. This count provides the necessary leverage to begin drafting a formal memorandum for the Ministry of Finance regarding the removal of double taxation on equity transactions.
Reached 500 supporters
March 9, 2018
Reached 100 supporters
March 9, 2018
412 Comments
Yes stt should be abolished as more tax will affect our arrbitrage pepole who are the largest liquidity provider in market and stt was inteoduce to avoid double taxtion in market as we earn profit or not but we have to pay tax and as other expanses this tax have not income tax benfit becuse it is cost of trade
It must be removed post LTCG tax as paying on transaction without even profit or loss is really narrowing net margin after taking such a high risk.
While introducing STT, Govt. had promised that NO long term capital gain would be taxed but there have keep charging both STT as well as LTCG. This is not fair. Otherwise allowed STT as expenses.
STT was introduced in place of LTCG. Now government is charging LTCG than STT should definitely go away. If you closely look at the expenses on the contract note than you will understand that government is charging more per crore of turnover than our broker. Clear loot by government.
this tax we have to pay even if we incur loss..this is illogical...abolish completely..we are already burdened with 6-7 other levies/charges/surcharges/tax/etc
Once taxed on total sale and again tax on LTCG, which is part of sale. Hence taxed twice as STT and LTGT. This is unfair, one of this should not be applicable. This is loud and clearly unfair from the principal of taxation.
Why we pay double Tex in transactionn which we did in stock market,mean buyer and seller both pay taxes to government where as in selling other properties only buyers pay texes
Thank you
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Yes stt should be abolished as more tax will affect our arrbitrage pepole who are the largest liquidity provider in market and stt was inteoduce to avoid double taxtion in market as we earn profit or not but we have to pay tax and as other expanses this tax have not income tax benfit becuse it is cost of trade