BANKING AFFAIRS

Detailed explanation-1: -Securities Transaction Tax (STT) is a tax payable in India on the value of securities (excluding commodities and currency) transacted through a recognized stock exchange.

Detailed explanation-2: -The STT full form is the Securities Transaction Tax (STT), and it is a type of financial transaction tax payable in India on every purchase or sale of securities that are listed on the Indian stock exchanges.

Detailed explanation-3: -Securities Transaction Tax (STT) is a type of turnover tax where the investor is obliged to pay a tax on the total sum received or paid in a transaction done through an exchange. STT is not applicable for commodities and currency transactions and on transactions outside of the exchange.

Detailed explanation-4: -Securities Transaction Tax is a direct tax charged on purchase and sale of securities that are listed on the recognized stock exchanges in India. STT is always calculated on the Average Price. The exchange does not follow the FIFO (First In First Out) or LIFO (Last In First Out) methods to compute the STT.

Detailed explanation-5: -Securities Transaction Tax is applicable on following securities, as per criteria set by Securities Contracts (Regulation) Act: Shares, bonds, debentures, debenture stock or other marketable securities, scrips, stocks of a like nature in or of any incorporated company or another body corporate. Derivatives.