The new income tax law and other budgetary provisions, including higher Securities Transaction Tax (STT) on F&O trade and lower TCS on overseas tour packages and LRS remittances for medical and education purposes, will come into effect from April 1. Also, the Budget announcement of a 20-year tax holiday up to 2047 to any foreign company that procures data centre services in India, and new safe harbour provisions with a higher threshold for software companies will come into effect from Wednesday, with the beginning of the 2026-27 fiscal. The Income-tax Act, 2025, will replace the Income-tax Act, 1961, with effect from April 1, 2026. The new Act aims to present the same tax policy in a more logical, accessible, and reader-friendly format. The Income Tax department has said that its e-filing portal will facilitate compliance under both the old and new Income Tax Acts in the transition period, and all assessments, appeals, and other proceedings relating to earlier years will continue .
The recent move on the STT hike is not the first such intervention to discourage retail participation in the derivatives segment.
Income Tax Department has asked brokers to deposit excess securities transaction tax collected from clients for FY24 and earlier years along with interest
ICICI Securities' Pankaj Pandey says markets may need time to adjust to the new STT regime but sees strong FY27 earnings and midcap outperformance
The Budget has raised the cost of trading futures and options and the market felt it instantly. A sharp sell-off, spiking volatility, and big questions for traders.
The markets were looking for a reason to rally, and they have got it now in the form of India-US trade deal. Once analysts and investors settle down, they will ask more questions (on the deal)
Schemes may see 30-50 bps impact but won't go out of favour
A sharp hike in derivatives transaction tax and lack of market-friendly measures in Budget 2026 rattled sentiment, dragging Sensex and Nifty to their steepest Budget-day fall in six years
The second increase in STT since 2024, effective April 1, seeks to curb excessive speculation in derivatives markets and boost tax collections hit by lower trading volumes this fiscal
STT kike will be a headwind for capital-market-linked stocks. With derivatives volumes already shrinking in recent months, the hike, analysts say, may further their pressure near-term earnings.
The key message from the Budget is clear: fiscal consolidation will continue alongside growth, supported by responsible financial management
From Tuesday onwards i.e effective October 1, 2024, the Indian financial markets will undergo several reforms that investors must know
Stock exchanges and brokers, catering to retail traders, could be hit hard by the regulator Sebi's proposed measures for Futures & Options (F&O) trading regulations, with market volumes slumping 30-40 per cent, according to reports. If these measures are implemented, the number of investors could decrease, it added. Moreover, discount brokers, who depend heavily on retail investors, are expected to be more affected than traditional full-service brokers. Sebi, in its consultation paper in July, proposed seven measures, including increasing minimum contract size and upfront collection of option premiums, intra-day monitoring of position limits, rationalisation of strike prices, removal of calendar spread benefit on expiry day and increase in near contract expiry margin. Sebi stated that these measures are aimed at enhancing investor protection and promote market stability in derivative markets. According to a report by Jefferies, Sebi's proposed measures to reduce the number of .
Buyback and tax-free dividend had a gap and an equalisation was needed. Volumes in F&O trading had gone up rapidly and, in a way, the increase in STT on F&O will protect investor interest, he said
To mitigate the blow from the increased taxes, the amount exempted from the LTCG on listed securities has been increased to Rs 125,000 a year from the earlier limit of Rs 100,000
STT on derivatives hike in Budget 2024: While unveiling the Budget 2024 proposals, the first budget in the Modi 3.0 regime, FM Nirmala Sitharaman announced a slew of changes relating to stock markets
Union Budget 2024-25 news: FM Nirmala Sitharaman hiked hiked LTCG tax to 12.5 per cent from 10 per cent on all financial and non-financial assets
Collection in H1 over 50% of BE of Rs 27,625 cr
STT raised as Finance Bill passes without discussion
The finance ministry clarified on Friday that the securities transaction tax (STT) on selling options has been raised to 0.062 per cent from 0.05 per cent and not from 0.017 per cent to 0.021 per cent