STT Proposed to be Reduced by 20 Per Cent
GAAR PANEL Mooted to Counter Aggressive Tax Avoidance Schemes
Levy of Alternate Minimum Tax Proposed to be Extended
In the General Budget 2012-13presented by theUnion Finance Minister ShriPranab Mukherjeein LokSabha here today, it has been proposed to reduce the Securities Transaction Tax (STT) on cash delivery transactions by 20 per cent, from 0.125 per cent to 0.1 per cent, in order to reduce transaction costs in the capital markets.
In order to moderate the outgo on profit linked deductions, it has been proposed to extend the levy of Alternate Minimum Tax (AMT) on all persons other than companies, claiming profit linked deduction.
The Finance Minister, Shri Mukherjee has also proposed to introduce a General Anti Avoidance Rule (GAAR) in order to counter aggressive tax avoidance schemes, while ensuring that it is used only in appropriate cases, by enabling a review by a GAAR panel.