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119. Amendment of Act 23 of 2004. |
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In the Finance (No. 2) Act, 2004, with effect from the 1st day of June, 2008,
(i) in section 98, in the Table, for serial number 4 and the entries relating thereto, the following serial number and the entries shall respectively be substituted, namely :
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Sl. No. |
Taxable securities transaction |
Rate |
Payable by |
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(1) |
(2) |
(3) |
(4) |
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"4. |
(a) Sale of an option in securities |
0.017 per cent. |
Seller |
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(b) Sale of on option in securities, where option is exercised |
0.125 per cent. |
Purchaser |
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(c) Sale of a futures is securities |
0.017 per cent. |
Seller"; |
(ii) in section 99, for clause (a), the following clause shall be substituted, namely :
"(a) in the case of a taxable securities transaction relating to an option in securities, shall be
(i) the option premium, in respect of transaction at item (a) of serial number 4 of the Table in section 98;
(ii) the settlement price, in respect of transaction at item (b) of serial number 4 of the Table in section 98;".
Clause 119 seeks to amend the provisions of Chapter VII of the Finance (No. 2) Act, 2004, relating to the securities transaction tax.
Section 98 of the said Act provides for charge of securities transaction tax. It is provided that in the case of sale of a derivative, where the transaction of such sale is entered into in a recognised stock exchange, the securities transaction tax will be at the rate of 0.017 per cent. and will be payable by the seller.
It is proposed to substitute said serial No. 4 of the Table in section 98 and also amend section 99 of the said Act so as to provide that the securities transactions tax shall be levied at the rate of 0.017 per cent. on sale of a futures in securities and shall be payable by the seller; 0.017 per cent. of the option premium on the sale of a derivative, being option in securities and shall be payable by the seller; and 0.125 per cent. of the settlement price on the sale of an option in securities, where option is exercised, and shall be payable by the purchaser.
This amendment will take effect from 1st June, 2008.
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