The Finance Bill 2013-14 proposes reduction in the rates of Securities Transaction Tax (STT) in respect of certain transactions.   Presenting the Union Budget in the Lok Sabha today, the Finance Minister Shri P.Chidambaram proposed the following reductions in the rates of STT:-

           Equity futures:                                   From 0.017 to 0.01 per cent

           MF/ETF redemptions at fund counters: From 0.25 to 0.001 percent

           MF/ETF purchase/sale on exchanges:   From 0.1 to 0.001 percent, only on the seller

           The Finance Minister noted STT has a stabilising effect on transactions and he had proposed reductions in the rate of tax taking note of the changes and shifts in the market.

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DSM/RC/nb/24

Securities Transaction Tax reduction announced for equity futures and mutual fund/ETF transactions, lowering seller and fund counter rates. Securities Transaction Tax (STT) rates are proposed to be reduced for specified market transactions: the Bill lowers STT on equity futures and on mutual fund and ETF transactions, distinguishing redemptions at fund counters from purchases or sales on exchanges and applying the exchange transaction charge specifically to the seller.