The Securities Transaction Tax (STT) will be levied on all shares traded in stock exchanges from October 1. The STT rates are 0.15 per cent on delivery-based trades, where the levy will be equally split between the buyer and seller. An STT rate of 0.015 per cent will be levied on sellers in non-delivery based equity transactions and 0.010 per cent on sellers of derivatives. Wherever STT is paid, long-term capital gains tax will be nil, whereas short-term capital gains will be taxed at 10 per cent as against 30 per cent earlier. From October 1, all equity fund sales will also attract a transaction tax of 15 paise for every Rs 100. The tax will be deducted by mutual funds at source.
