Interim Budget: Stamp duty on shares to be based on investor's home state
Collection process streamlined but brokers unhappy with revised norms
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Illustration by Binay Sinha
The government has introduced a new process for levying stamp duty on shares.
The same will now be collected at the stock exchange in a uniform manner. Earlier, different policies were followed pertaining to collection, with stamp duty rates varying across states.
Interim Finance Minister Piyush Goyal’s move was seen bringing in some ‘operational convenience’, according to market experts.
“Our government had promised last year that we would carry out reforms in stamp duty levied and collected, on financial securities transactions. I am proposing, therefore, through the Finance Bill, necessary amendments in this regard. The amendments proposed will usher in a very streamlined system,” Goyal said during the budget speech.
He added tax collection is at the bourse level. States would get a share depending on where the buying investor is located.
“Stamp duties will be levied on one instrument relating to one transaction and gets collected only at one place, through the stock exchange. The duty so collected will be shared with all the state governments, seamlessly, on the basis of domicile of the buying client,” he said. Brokers had earlier asked for the abolition of stamp duty. They had submitted a representation including abolition of stamp duty and rationalisation of securities transaction tax (STT).
The same will now be collected at the stock exchange in a uniform manner. Earlier, different policies were followed pertaining to collection, with stamp duty rates varying across states.
Interim Finance Minister Piyush Goyal’s move was seen bringing in some ‘operational convenience’, according to market experts.
“Our government had promised last year that we would carry out reforms in stamp duty levied and collected, on financial securities transactions. I am proposing, therefore, through the Finance Bill, necessary amendments in this regard. The amendments proposed will usher in a very streamlined system,” Goyal said during the budget speech.
He added tax collection is at the bourse level. States would get a share depending on where the buying investor is located.
“Stamp duties will be levied on one instrument relating to one transaction and gets collected only at one place, through the stock exchange. The duty so collected will be shared with all the state governments, seamlessly, on the basis of domicile of the buying client,” he said. Brokers had earlier asked for the abolition of stamp duty. They had submitted a representation including abolition of stamp duty and rationalisation of securities transaction tax (STT).