In a significant blow to Futures and Options (F&O) traders, Finance Minister Nirmala Sitharaman declared raising the STT rate from 0.01 per cent to 0.02 per cent. As a result of this, post the implementation of this budget proposal, the equity and index traders will have to pay the double of tax for their trade.
While announcing the Union Budget 2024, FM Sitharaman proposed to double the STT rate. She stated, “I have a couple of proposals for deepening the tax base. First, Security Transactions Tax (STT) on futures and options of securities is proposed to be increased to 0.02 percent and 0.1 percent, respectively. Second, for reasons of equity, I propose to tax income received on buyback of shares in the hands of the recipient.”
