Budget expectations: Reintroduction of rebate for section 88E will result in a larger collection of STT/CTT, says ANMI
India is the only country levying STT and CTT taxes in the delivery-based as well as derivatives and commodities futures segment, thus, ANMI reckons that a rebate under Section 88E for STT and CTT paid should be reintroduced.
With the Union Budget 2024 just around the corner, the Association of National Exchanges Members of India (ANMI), a body comprising trading members across the country of stock exchanges, has listed down a wishlist that will be beneficial for the Indian share market participants.
The list includes the reintroduction of rebates under Section 88E for Securities Transaction Tax (STT) and Commodity Transaction Tax (CTT) paid.
As per ANMI, India levies Securities Transaction Tax (STT) in the cash market and derivatives segment. However, the same is only levied at the time of transfer of beneficial ownership (delivery-based) and no STT is levied if the trade does not result in delivery.
Additionally, India is the only country levying STT and CTT taxes in the delivery-based as well as derivatives and commodities futures segment, thus, ANMI reckons that a rebate under Section 88E for STT and CTT paid should be reintroduced.
ANMI President Vinod Kumar Goyal had already submitted association's recommendations to the CBDT Chairperson.
How will the reintroduction of rebate under Section 88E help?
Firstly, section 88E benefits can be continued as applied to entities having a business income. ANMI explains the benefits of 88E through the following illustrations.
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