New Delhi, Mar 24: The Finance Ministry on Friday evening clarified that the securities transaction tax (STT) on options trading has been hiked by 25 per cent from 0.05 per cent to 0.0625 per cent, and not from 0.017 per cent to 0.021 per cent, saying that it was a typographical error and the rectification will be done in accordance with the extent procedure of the government.
The STT for futures trading remains the same, as was announced in the amendments to the Finance Bill 2023, i.e., it has been raised to 0.0125 per cent from 0.01 per cent. The hikes in STT for both futures and options trading would be effective from April 1, 2023.
In short, the STT has been hiked by up to 25 per cent on futures and options (F&O) trading as per the amendments to the Finance Bill 2023, which was passed in the Lok Sabha earlier in the day through voice vote, without any discussion.