Investing
STT (Securities Transaction Tax) — Meaning
A tax on buying and selling listed securities on stock exchanges, a condition for concessional capital gains rates.
What is STT (Securities Transaction Tax)?
Securities Transaction Tax is levied on transactions in listed equity shares, equity-oriented mutual funds and derivatives on recognised stock exchanges, at rates that differ by transaction type. Payment of STT is a condition for the concessional rates on short-term (20%, Section 111A) and long-term (12.5% above ₹1.25 lakh, Section 112A) capital gains. STT itself isn't deductible against capital gains, though traders taxed on business income can deduct it as an expense.
More Investing terms
RSU (Restricted Stock Unit)
Employer shares granted on a vesting schedule, taxed as salary on vesting and as capital gains on sale.
F&O Turnover
For tax audit purposes, the total of absolute profits and losses on each futures and options trade.
Speculative Income
Income from transactions settled without delivery — mainly intraday equity trading.
VDA (Virtual Digital Asset)
Crypto, NFTs and similar assets, taxed at a flat 30% with no loss set-off and 1% TDS.
