Tax Hotline
September 30, 2004
Securities Transaction Tax provisions notified

The Ministry of Finance, vide its notification dated September 28, 2004, has notified October 1, 2004 as the effective date for the Securities Transaction Tax (STT) provisions to come into force. Accordingly, transactions for sale / purchase of equities, derivatives or units of equity oriented mutual fund executed on recognised stock exchanges in India on or after October 1, 2004 would be entitled to exemption from long term capital gains tax or reduction in short term capital gains tax, as the case maybe. The STT rules have also been notified by the Ministry of Finance which lay down the provisions for computing the value of taxable securities transaction and other matters in relation thereto.

Source: Notification No. 247/2004 F.No. 142/23/2004-TPL dated September 28, 2004 and Notification No. 248/2004 F.No. 142/23/2004-TPL dated September 28, 2004.

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This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

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Tax Hotline

September 30, 2004

Securities Transaction Tax provisions notified

The Ministry of Finance, vide its notification dated September 28, 2004, has notified October 1, 2004 as the effective date for the Securities Transaction Tax (STT) provisions to come into force. Accordingly, transactions for sale / purchase of equities, derivatives or units of equity oriented mutual fund executed on recognised stock exchanges in India on or after October 1, 2004 would be entitled to exemption from long term capital gains tax or reduction in short term capital gains tax, as the case maybe. The STT rules have also been notified by the Ministry of Finance which lay down the provisions for computing the value of taxable securities transaction and other matters in relation thereto.

Source: Notification No. 247/2004 F.No. 142/23/2004-TPL dated September 28, 2004 and Notification No. 248/2004 F.No. 142/23/2004-TPL dated September 28, 2004.

Disclaimer

The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.

NDA Connect

Connect with us at events, 
conferences and seminars.