Q. Consider the following statements regarding Securities Transaction Tax (STT) in India:
1.It is a direct tax levied on the value of securities transactions conducted on recognized stock exchanges, including shares, derivatives, and equity-oriented mutual funds.
2.It is applicable on both on-market and off-market transactions of securities in India.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation: 1 only
Statement 1 is correct: STT is a direct tax imposed on transactions of securities executed on recognized stock exchanges.
Statement 2 is incorrect: STT is not applicable to off-market transactions; it only applies to trades conducted on recognized stock exchanges.
Source: TH
