BANKING AFFAIRS

Detailed explanation-1: -Securities transaction tax is levied on each purchase and sale of equity listed on a domestic and recognized stock market. The rate of taxation is determined by the government. All stock market transactions that involve equity or equity derivatives like futures and options are liable to be taxed under the STT act.

Detailed explanation-2: -There is no STT levied on equity shares and equity mutual funds. However, 0.1% of STT applies to the total value of the delivery based sale and purchase equity shares. In case of purchase, the buyer will pay the tax and in case of a sale, the seller will pay the tax.

Detailed explanation-3: -The correct answer is Taxes on Advertisements. There are taxes that are levied and collected by the Union, but the entire proceeds of which are assigned to the states, in the proportion determined by the Parliament.

Detailed explanation-4: -STT is a direct tax levied by the government when you buy and sell securities like Equities, Mutual Funds, and Futures & Options in the stock market. CTT is similar to STT and is levied when you buy and sell commodity futures and options contracts.