Security transaction tax

Page no : 2

CHAITRI SUDHAKARBHAI KHAROD (ARTICLE) (752 Points)
Replied 13 January 2020

I searched from net by myself and found that STT is just like TCS....seller will collect the tax and deposit the tax to central government by using challan no. 282....It is paid through RBI, SBI or other authorised banks like other direct taxes....now I am fully satisfied.....thank you all...

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sabyasachi mukherjee (27797 Points)
Replied 13 January 2020

Bank can also collect this and deposit it to authorities...

CHAITRI SUDHAKARBHAI KHAROD (ARTICLE) (752 Points)
Replied 13 January 2020

Yes...now one more question....

Under section 112A , it is provided that STT will be paid on both at the time of acquisition and transfer of equity shares in a company....

then isn't it double taxation??? because first seller will pay STT on transfer of shares then buyer will pay STT on acquisition of shares...though both are different that former is on sale and later is on purchase but it's very difficult to understand how it works? ?

sabyasachi mukherjee (27797 Points)
Replied 17 January 2020

Chaitri
open a demat account.
provided you hv parked funds which are lying in banks and earning 3.5 -6% instead.
But remember you hv to think a long term perspective.