Further to Exchange Notice No. 20170103-10 dated January 3, 2017, we would like to inform you that as per the Finance (No 2) Act, 2019, although the rates of levy of Securities Transaction Tax (“STT”) on transactions entered into in a recognised stock exchange have been kept same, there has been some amendment in the value of taxable securities transaction in relation to serial no. 4(b) of the table under section 98 of the Finance (No.2) Act, 2004 pertaining to “sale of an option in securities, where option is exercised”.
The amendment in clause (a)(ii) of section 99 of the Finance (No. 2) Act, 2004 relating to the value of taxable securities transaction is as below:
With effect from September 1, 2019, in case where Option is exercised, the value on which STT is levied shall be taken as “Intrinsic Value” instead of “Settlement Price”. Intrinsic value as defined by clause (a)(ii) of section 99 of the Finance (No. 2) Act, 2019 shall be the difference between Settlement price and Strike Price.
All trading members are hereby informed that there is no change in the rate of Securities Transaction Tax (STT) and the existing procedures for calculation, levy and collection of STT by the Exchange shall continue.
For further clarifications on the subject matter you may kindly contact the following officials -
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Type of Query
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Contact Person
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Department
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Direct Line
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Mobile No.
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STT Rate
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Dheeraj Sisodia
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Finance
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022-22728647
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+91-7700084229
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STT Rate
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Harihara Subramanian
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Finance
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022-22728522
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+91-9892094957
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STT calculation & end-of-day files
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Sameer Vaze
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I.T. Operations
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022-22728543
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+91-9819421414
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