The Hindu Business Line : Taxing trades in stocks, futures and options

Stock-trading tax: The securities transaction tax (STT) has stabilised, but the rates are widely perceived to be too low. I, therefore, propose to make a very nominal increase in the rates for all categories of transactions.

Thus, a day trader who is liable to pay STT at 0.015 per cent will now be liable to pay at 0.02 per cent. This small increase should not ruffle anyone's feathers. This nominal rate of increase will apply to all categories.

F & O `not speculative': There have been significant developments in the past decade in the capital market including the introduction of trading in financial derivatives. We have also established a transparent system of trading with adequate safeguards for audit trail. Hence, I propose to amend the Income Tax Act to provide that trading in derivatives in specified stock exchanges will not be treated as `speculative transactions' for the purposes of the Income Tax Act.

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