Finance Bill 2023: FM Nirmala Sitharaman Moves Amendment To Correct STT Rate

Finance minister Nirmala Sitharaman on Monday moved an modification to the Finance Bill in Rajya Sabha to appropriate the figures with regard to price of Security Transaction Tax (STT) to be levied on sale of choices in addition to futures.

The amended Finance Bill 2023 by correcting STT price has been returned to Lok Sabha, sources stated.

The amended Bill is more likely to be taken up by Lok Sabha both right this moment or tomorrow and thereafter the Budgetary train could be full. The Lok Sabha is adjourned until 4 pm.

In the Finance Bill 2023, handed by the Lok Sabha on Friday, the Securities Transaction Tax on choices is proposed to be elevated to 0.0625 per cent from 0.05 per cent and on futures contracts to 0.0125 from 0.01 per cent.

After the Lok Sabha cleared the Finance Bill, which has 64 official amendments, the finance ministry issued an announcement saying that there was a typographical error within the amendments with respect to the change in STT on choices buying and selling.

The error, the finance ministry stated, will likely be rectified in accordance with the extent process of the federal government of India.

As per the amendments, the STT on choices has been elevated from 0.017 per cent to 0.021 per cent.

“In case of STT, the speed is proposed to be modified from 0.05 per cent to 0.0625 per cent. There was a typographical error which is being corrected,” the ministry said.

In percentage terms, STT on sale of futures has been hiked from 0.01 per cent to 0.0125 per cent and in case of options it has been hiked from 0.05 per cent to 0.062 per cent.

Traders in the futures segment will now have to pay STT of Rs 1,250 on Rs 1 crore of turnover against the earlier levy of Rs 1,000. The new rules will come into effect from the new financial year 2023-24.

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