The Finance Bill, 2023 was amended by Finance Minister Nirmala Sitharaman on Monday (27th March 2023) in the Rajya Sabha to rectify the data on the rate of Security Transaction Tax (STT) to be assessed on sales of options and futures. According to the reports, the lower house passed the bill within 9 minutes and without any discussion.
The Lok Sabha has received the Finance Bill 2023 that has been corrected to reflect the STT rate as per the official information.
The Securities Transaction Tax was proposed to be raised from 0.5% to 0.0625 on options and from 0.1% to 0.0125 on futures contracts in the Finance Bill 2023, which was passed by the Lok Sabha on Friday (24th March 2023).
STT on sales of futures has increased from 0.01 percent to 0.0125 percent in percentage terms, and for sales of options, it has increased from 0.05 percent to 0.062 percent.
There was a typographical error in the modifications regarding the change in STT on options trading, according to a statement from the finance ministry after the Lok Sabha approved the Finance Bill, which has 64 official amendments.
According to the established procedure of the Indian government, the error would be corrected, according to the finance ministry.
“It is suggested that the rate for STT be changed from 0.05 percent to 0.0625 percent. The clerical error has been fixed, according to the ministry.
As opposed to the previous fee of Rs 1,000, traders in the futures category would now be required to pay STT of Rs 1,250 on Rs 1 crore of transaction. The new regulations will take effect in the 2023–24 fiscal year.
Apart from STT, there were many suggestions made to amend different laws including the customs, income tax, GST ..etc.
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