types of tax

Two i.e Direct & Indirect taces

STT is direct tax or indirect tax..?

STT means....?

STT is indirect tax

Securities Transaction Tax or STT is a type of Indirect Tax which is levied at the time of sale/purchase of securities through the Indian Stock Exchanges. These securities include Shares, Mutual Funds, F&O Transactions etc.Securities Transaction Tax was introduced in India by the 2004 Budget and is applicable with effect from 1st April 2004.

The reason for the introduction of Securities Transaction Tax was to lower the tax on short term capital gains and to make the long term capital gains exempted from the levy of any tax.