{"id":347630,"date":"2025-10-08T18:09:09","date_gmt":"2025-10-08T12:39:09","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=347630"},"modified":"2025-10-08T18:09:09","modified_gmt":"2025-10-08T12:39:09","slug":"securities-transaction-tax-stt","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/securities-transaction-tax-stt\/","title":{"rendered":"Securities Transaction Tax (STT)"},"content":{"rendered":"<p><strong>News<\/strong><strong>: <\/strong>On October 6, 2025, the Supreme Court decided to examine a plea challenging the constitutional validity of the Securities Transaction Tax under the Finance Act, 2004.<\/p>\n<h2>About Securities Transaction Tax (STT)<\/h2>\n<figure id=\"attachment_347631\" aria-describedby=\"caption-attachment-347631\" style=\"width: 428px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-347631\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Source-ClearTax.jpg?resize=428%2C194&#038;ssl=1\" alt=\"\" width=\"428\" height=\"194\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Source-ClearTax.jpg?resize=300%2C136&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Source-ClearTax.jpg?resize=1024%2C464&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Source-ClearTax.jpg?resize=768%2C348&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Source-ClearTax.jpg?resize=1536%2C696&amp;ssl=1 1536w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Source-ClearTax.jpg?resize=1568%2C711&amp;ssl=1 1568w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/10\/Source-ClearTax.jpg?w=1756&amp;ssl=1 1756w\" sizes=\"auto, (max-width: 428px) 100vw, 428px\" \/><figcaption id=\"caption-attachment-347631\" class=\"wp-caption-text\">Source &#8211; ClearTax<\/figcaption><\/figure>\n<ul>\n<li>It is a <strong>direct tax <\/strong>on <strong>every purchase and sale of securities listed on recognised stock exchanges in India.<\/strong><\/li>\n<li><strong>Introduced in: <\/strong>It was introduced in<strong> 2004.<\/strong><\/li>\n<li><strong>Aim: <\/strong>It was introduced<strong> to combat tax evasion <\/strong>in the stock market.\n<ul>\n<li>STT is <strong>currently 0.1%<\/strong> on <strong>both buy and sell sides<\/strong> for stock trades.<\/li>\n<\/ul>\n<\/li>\n<li>Taxable securities include <strong>equity, derivatives, and units of equity-oriented mutual funds.<\/strong><\/li>\n<li>It <strong>also covers unlisted shares sold under an offer for sale in an IPO that are later listed.<\/strong><\/li>\n<li><strong>Legislative backup<\/strong>\n<ul>\n<li><strong>Imposed under<\/strong> the Finance Act, 2004.<\/li>\n<li><strong>Governed by<\/strong> the <strong>Securities Transaction Tax Act<\/strong>, which lists taxable transactions, valuation rules, and the liable party (buyer or seller).<\/li>\n<\/ul>\n<\/li>\n<li><strong>Concerned with Securities Transaction Tax<\/strong>\n<ul>\n<li><strong>Double taxation:<\/strong> STT taxes the same transaction twice. A trader first pays STT on the transaction value and then pays Short-Term Capital Gain (<strong>STCG<\/strong>) or long-term capital gains (<strong>LTCG)<\/strong> on the profit from the same transaction.<\/li>\n<li><strong>Constitutional concern:<\/strong> STT taxes the act of trading rather than profits which violates <strong>Articles 14, 21, and 19(1)(g)<\/strong> of the Constitution.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: On October 6, 2025, the Supreme Court decided to examine a plea challenging the constitutional validity of the Securities Transaction Tax under the Finance Act, 2004. About Securities Transaction Tax (STT) It is a direct tax on every purchase and sale of securities listed on recognised stock exchanges in India. Introduced in: It was&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/securities-transaction-tax-stt\/\">Continue reading <span class=\"screen-reader-text\">Securities Transaction Tax (STT)<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,1760,12039],"tags":[11872],"class_list":["post-347630","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-polity-and-nation","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/347630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=347630"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/347630\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=347630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=347630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=347630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}