Need A Financial Product Forums Tax Savings What is Securities transaction Tax?

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    Bhumika Kaul
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    What is Securities transaction Tax?

    #47353

    Sneha Nayak
    Member

    There are lot of people who restrain from declaring their profit with intension of avoid paying capital gain tax, as government agencies can tax only those values and profits which are declared by an individual. To tackle this situation government introduced Securities transaction tax or STT which can be levied upon each and every transaction happening in the stock market. This means that if you buy or sell equity share, equity oriented mutual funds, derivative instrument than this tax is applicable. This tax is added to the price of securities in stock market at the time transaction only so it is difficult to avoid this tax, As the amount of this tax is very small people do not take notice of it.

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