11-MAY-2021 | Intraday Calls| | Happy Trading|

 

                              

                              Everyday Intraday Tips

#Ramcosys sell : 516 or below|T1: 513| T2:510|T3: 507|  SL: 519

#Bhartiartl sell : 572 or above |T1: 569| T2:566|T3: 564|  SL: 575

#Mcdowell-n buy : 552 or above |T1: 555| T2:558|T3: 561|  SL: 549

 

 

 

11/05/2021 8:38:14 AM    Offer             Latest IPO

REGISTRATION NO. UP-15D0010339

1.Study & Education purpose only.

2.Trade within 1 to 250 Shares only.

3.Follow the Stop-Loss Strictly.

4.Do paper-work first before jumping into the real Market.

5. For personal use only sharing or publishing other places

is a punishable offense.

6. Accessing this website means you Agree to Terms of Use.

 

Free Intraday Tips Daily Intraday Tips

 Telegram No. 09586601539.

 

10-MAY-2021 | Intraday Calls| | Happy Trading|

 

                              

                              Everyday Intraday Tips

#Cadilahc buy : 604 or above|T1: 607| T2:610|T3: 613|  SL: 601

All target hit (high 629)

#Jindalstel sell : 476 or below |T1: 473| T2:470|T3: 467|  SL: 480

Call not activated 

#Cumminsind buy :838 or above |T1: 842| T2:845|T3: 848|  SL: 835

First and second target hit

 

 

 

10/05/2021 8:40:51 AM    Offer             Latest IPO

REGISTRATION NO. UP-15D0010339

1.Study & Education purpose only.

2.Trade within 1 to 250 Shares only.

3.Follow the Stop-Loss Strictly.

4.Do paper-work first before jumping into the real Market.

5. For personal use only sharing or publishing other places

is a punishable offense.

6. Accessing this website means you Agree to Terms of Use.

 

Free Intraday Tips Daily Intraday Tips

 Telegram No. 09586601539.

 

Know the Securities Transection Tax (STT ) on Trading

 Securities Transaction Tax (STT) is the tax payable on the value of taxable securities transactions. STT was introduced in India by the 2004 budget and is applicable with effect from 1st October 2004.

 Covered in Securities?

Securities definition is as per section 2(h) of the Securities Contracts (Regulation) Act, 1956, but for our purpose, let’s just simply say Securities means Equity Shares and Equity Derivatives (i.e. Futures and Options). The full definition of Securities is given in Appendix, for information.

Taxable transactions?

Purchase and Sale of securities through a recognized stock exchange in India. STT is not applicable on off-market transactions.

STT  Rates:-

STT is applicable at different rates depending upon the security (whether equity or derivative) and the transaction (whether purchase or sell). Current STT rates are given below. Note that Service Tax, Surcharge, and Education Cess are not applicable on STT.

STT applicable for Equity Transactions

  • Delivery Transactions:
    Purchase: 0.10% of Turnover i.e. (Number of Shares * Price)
    Sell: 0.10% of Turnover i.e. (Number of Shares * Price)
  • Intra-day Transactions:
    Purchase: NIL
    Sell: 0.025% of Turnover i.e. (Number of Shares * Price)

STT  for Derivative Transactions

  • Future Transactions:
    Purchase: NIL
    Sell: 0.010% of Turnover i.e. (Number of Lots * Lot Size * Price)
    [Note: STT rate on Sale of Future  securities has been revised from 0.017% to 0.010% vide the 2013 Budget effective 1st June 2013]
  • Option Transactions:
    Purchase: NIL at the time of purchase of the option. However, the purchaser has to pay 0.125% of the Settlement Price i.e. (Number of Lots * Lot Size * Strike Price), in case of option exercise
    Sell: 0.017% of Premium

Securities Transaction Tax (STT) is the tax payable on the value of taxable securities transactions. STT was introduced in India by the 2004 budget and is applicable with effect from 1st October 2004.

 Covered by Securities?

Securities definition is as per section 2(h) of the Securities Contracts (Regulation) Act, 1956, but for our purpose, let’s just simply say Securities means Equity Shares and Equity Derivatives (i.e. Futures and Options). The full definition of Securities is given in Appendix, for information.

Taxable transactions?

Purchase and Sale of securities through a recognized stock exchange in India. STT is not applicable on off-market transactions.

STT Rates: - 

STT is applicable at different rates depending upon the security (whether equity or derivative) and the transaction (whether purchase or sell). Current STT rates are given below. Note that Service Tax, Surcharge, and Education Cess are not applicable on STT.

STT applicable for Equity Transactions

  • Intra-day Transactions:
    Purchase: NIL
    Sell: 0.025% of Turnover i.e. (Number of Shares * Price)
  •  
  • Delivery Transactions:
  • Purchase: 0.10% of Turnover i.e. (Number of Shares * Price)
    Sell: 0.10% of Turnover i.e. (Number of Shares * Price)
  •  

STT applicable for Derivative Transactions

  • Option Transactions:
    Purchase: NIL at the time of purchase of an option. However, the purchaser has to pay 0.125% of the Settlement Price i.e. (Number of Lots * Lot Size * Strike Price), in case of option exercise
    Sell: 0.017% of Premium
  •  
  • Future Transactions:
    Purchase: NIL
    Sell: 0.010% of Turnover i.e. (Number of Lots * Lot Size * Price)
    [Note: STT rate on Sale of Future securities has been revised from 0.017% to 0.010% vide the 2013 Budget effective 1st June 2013]
  •  

Summary of the STT rates are given  table below:

Product

Transaction

STT rate

Charged on

Equity-Delivery

Purchase

0.10%

Turnover

Sell

0.10%

Turnover

Equity-Intraday

Purchase

Sell

0.025%

Turnover

Future

Purchase

Sell

0.010%

Turnover

Option

Purchase

0.125%

Settlement price, on exercise

Sell

0.017%

Premium

Kindly note that the STT rates were revised in the 2012 Budget and the above rates came in effect from 1st July 2012. STT rates for Equity Delivery transactions (Both Purchase and Sale transaction) was reduced from 0.125% to 0.10%. There was no other change in the STT rates.

Income Tax and STT

Taxation of profit or loss from securities transactions depends on whether the activity of purchasing and selling of shares/derivatives is classified as investment activity or business activity. Treatment of STT also depends upon whether the income from these securities transactions are included under the head “Income from Capital Gains” or under the head ‘Profits and Gains of Business or Profession’.

Scenario 1: ‘Income from Capital Gains’

This refers to a scenario where the assessee is either Salaried or is engaged in some other business or profession and trading in securities is not mainline of business. In such cases, gains or losses from securities transactions are taxed under the head “Income from Capital Gains”. Gains or losses are subject to Short Term Capital Gains (STCG) or Long Term Capital Gains (LTCG) tax depending upon the period of holding, i.e., if the holding period is less than 1 year, gains are classified as STCG and if the holding period is equal to or greater than 1 year, gains are classified as LTCG. Any equity share, which has been sold through a recognized stock exchange and on which STT has been paid, is entitled to exemption from LTCG under Section 10 (38) of the Act. Similarly, in the case of STCG of such shares, the gains shall be taxed only at 15%, plus surcharge and education cess under section 111A of the Act.

Important points to note:

  • STCG and LTCG rates of 15% and NIL are available only if the specified security is sold through a recognized stock exchange. Private deals or transactions, not routed through a recognized stock exchange in India, will not be covered
  • The purchase of the specified securities could be through any mode and need not be through a recognized stock exchange
  • The exemption is not available to transactions where STT has not been paid
  • Since LTCG is exempt, Long Term Capital Loss, arising from these specified securities, cannot be set off against any other gain/income. This loss shall lapse
  • As per section 40(a)(ib) of the Income-tax Act, STT cannot be claimed as an expense in computing the income chargeable under Capital Gains

Scenario 2: ‘Profits and Gains of Business or Profession’

This refers to the scenario where the main business of the assessee is trading in securities. In such cases, the gains or losses are classified as business income, which is taxed at the regular rate of income tax. STT paid in respect of taxable securities transactions entered into in the course of business shall be allowed as deduction under section 36 of the Income-tax Act. Until 31st March 2008, the amount of STT paid was allowed as a rebate under section 88E of the Income-tax Act. However, with effect from 1st April 2008, rebate available under section 88E has been discontinued.

“Securities” is defined in Section 2(h) of the Securities Contracts (Regulation) Act, 1956, to include:

(i) shares, scrips, stocks, bonds, debentures, debenture stock, or other marketable securities of a like nature in or of any incorporated company or other body corporate;
(ii) derivative;
(iii) units or any other instrument issued by any collective investment scheme to the investors in such schemes;
(iv) security receipt as defined in section 2(zg) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;
(v) Government securities;
(vi) such other instruments as declared by the Central Government; and
(vii) rights or interest in securities.

Product

Transaction

STT rate

Charged on

Equity-Delivery

Purchase

0.10%

Turnover

Sell

0.10%

Turnover

Equity-Intraday

Purchase

Sell

0.025%

Turnover

Future

Purchase

Sell

0.010%

Turnover

Option

Purchase

0.125%

Settlement price, on exercise

Sell

0.017%

Premium

Kindly note that the STT rates were revised in the 2012 Budget and the above rates came in effect from 1st July 2012. STT rates for Equity Delivery transactions (Both Purchase and Sale transaction) was reduced from 0.125% to 0.10%. There was no other change in the STT rates.

STT and  Income Tax 

Taxation of profit or loss from securities transactions depends on whether the activity of purchasing and selling of shares/derivatives is classified as investment activity or business activity. Treatment of STT also depends upon whether the income from these securities transactions is included under the head “Income from Capital Gains” or under the head ‘Profits and Gains of Business or Profession’.

Scenario 1: ‘Income from Capital Gains’

This refers to the scenario where the assessee is either Salaried or is engaged in some other business or profession and trading in securities is not mainline of business. In such cases, gains or losses from securities transactions are taxed under the head “Income from Capital Gains”. Gains or losses are subject to Short Term Capital Gains (STCG) or Long Term Capital Gains (LTCG) tax depending upon the period of holding, i.e., if the holding period is less than 1 year, gains are classified as STCG and if the holding period is equal to or greater than 1 year, gains are classified as LTCG. Any equity share, which has been sold through a recognized stock exchange and on which STT has been paid, is entitled to exemption from LTCG under Section 10 (38) of the Act. Similarly, in the case of STCG of such shares, the gains shall be taxed only at 15%, plus surcharge and education cess under section 111A of the Act.

Important points to note:

  • STCG and LTCG rates of 15% and NIL are available only if the specified security is sold through a recognized stock exchange. Private deals or transactions, not routed through a recognized stock exchange in India, will not be covered
  • The purchase of the specified securities could be through any mode and need not be through a recognized stock exchange
  • The exemption is not available to transactions where STT has not been paid
  • Since LTCG is exempt, Long Term Capital Loss, arising from these specified securities, cannot be set off against any other gain/income. This loss shall lapse
  • As per section 40(a)(ib) of the Income-tax Act, STT cannot be claimed as an expense in computing the income chargeable under Capital Gains

Scenario 2: ‘Profits and Gains of Business or Profession’

This refers to the scenario where the main business of the assessee is trading in securities. In such cases, the gains or losses are classified as business income, which is taxed at the regular rate of income tax. STT paid in respect of taxable securities transactions entered into in the course of business shall be allowed as deduction under section 36 of the Income-tax Act. Until 31st March 2008, the amount of STT paid was allowed as a rebate under section 88E of the Income-tax Act. However, with effect from 1st April 2008, the rebate available under section 88E has been discontinued.

Adjunct

“Securities” is defined in Section 2(h) of the Securities Contracts (Regulation) Act, 1956, to include:

(i) shares, scrips, stocks, bonds, debentures, debenture stock, or other marketable securities of a like nature in or of any incorporated company or other body corporate;
(ii) derivative;
(iii) units or any other instrument issued by any collective investment scheme to the investors in such schemes;
(iv) security receipt as defined in section 2(zg) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;
(v) Government securities;
(vi) such other instruments as declared by the Central Government; and
(vii) rights or interest in securities.