STT on the sale of futures contract has been elevated to Rs 1,250 on a turnover of Rs 1 crore, a 25 per cent hike as in contrast with Rs 1,000 earlier.
The finance ministry says the STT now stands at Rs 6,200 on a turnover of Rs 1 crore, indicating a 25 per cent hike as in contrast with Rs 5,000 earlier
Even as the federal government handed the Finance Bill 2023 within the Lok Sabha on Friday, there was a confusion over the quantum of hike in STT out there. To take away the confusion, the finance ministry later on Friday issued a clarification and stated the STT now stands at Rs 6,200 on a turnover of Rs 1 crore, indicating a 25 per cent hike as in contrast with Rs 5,000 earlier.
In the Finance Bill 2023, which was handed by Lok Sabha on the March 24 morning, STT on the sale of choices was hiked to Rs 2,100 on a turnover of Rs 1 crore in opposition to an earlier levy of Rs 1,700, thus creating confusion as STT was already hiked from Rs 1,700 to Rs 5,000 in 2016.
STT on the sale of futures contract has been elevated to Rs 1,250 on a turnover of Rs 1 crore, a 25 per cent hike as in contrast with Rs 1,000 earlier.
Explaining the STT hike, Zerodha co-founder Nikhil Kamath in a tweet stated, “STT hiked by 25 p.c. If an intraday retail dealer buys and sells 10 a lot of nifty futures, he has to pay Rs 855 in STT or 1.7 factors on every Nifty lot; if he trades 10 occasions a day, he has to seize 17 factors of a nifty transfer every single day on STT alone.”
STT hiked by 25 percent. If an intraday retail trader buys and sells 10 lots of nifty futures, he has to pay Rs 855 in STT or 1.7 points on each Nifty lot; if he trades 10 times a day, he has to capture 17 points of a nifty move every day on Stt alone. pic.twitter.com/Pm8Ru601MS— Nikhil Kamath (@nikhilkamathcio) March 24, 2023
He added that this is outside of Exchange charges, Stamp duty, Gst, Brokerage, and Sebi charges. The impact of each is as per the sequence above. Adding all this, he has to capture 30 points between Nifty volatility daily to break even (10 trds/day).
“By chance, if someone is profitable after all this, they pay the maximum income tax rate. We then wonder why many traders find it hard to be profitable. A robust and liquid stock market is cardinal to our economy; the small guy helping make this happen should also be helped,” Kamath additionally stated.
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