Key Points
Stock price movement on screen. The Securities Transaction Tax on the sale of options has been hiked, in keeping with the amendments made to Finance Bill, 2023, passed in the Lok Sabha on Friday...
On the sale of options, the STT has been increased to Rs 6,250 on a turnover of Rs 1 crore, compared to the earlier applicable levy of Rs 5,000...
Gaurav Bissa, vice president at InCred Capital Financial Services Pvt., said the STT hike will have a short-term impact on option volumes as market participants will take some time to reassess their strategies...
Hence, the impact is likely to be limited in terms of options volumes," he said.. Yet, the STT hike is unlikely to have a material impact on traders who deploy positional strategies with the aim of capturing higher option premiums, according to him...
All stock market transactions that involve equity or equity derivatives like futures and options are liable to be taxed under STT.. Finance Bill 2023: Massive Relief Proposed For Investors Of REITs, InvITs..
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