 "Supreme Court to hear plea challenging constitutional validity of STT")
The Supreme Court on Monday agreed to hear a plea challenging the constitutional validity of the Securities Transaction Tax (STT).
A bench led by Justice JB Pardiwala sought a response from the Union government, through the Ministry of Finance, on the petition filed by Aseem Juneja, through advocate Siddhartha K Garg.
The plea has alleged that the STT violates the fundamental rights to equality and to trade or earn a livelihood, as well as the basic right to live with dignity. STT is a tax charged on the purchase and sale of securities, including stocks and derivatives.
The plea also argues that STT violates the principle of double taxation, as the petitioner — a stock market trader — pays capital gains tax on the profit made in the market and then also has to pay STT, in addition to the capital gains tax paid on the same transaction.
It further states that STT is the only tax in India imposed for carrying out a profession irrespective of whether one makes a profit or not, which the petitioner contends is punitive in nature.