FE@CAMPUS MASTERMIND: Response by Sumit Kumar to question for Feb 4-10
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It started way back in 1694 at London stock exchange in the form of stamp duty and has come a long way. In India securities transaction tax was envisaged as an effective and efficient method of calculating tax on profit incurred on account of sale of securities also it was very less susceptible to tax evasion. Taxable securities transaction, payable by both the buyer and the seller, refers to any transaction of securities entered into in a recognized Stock Exchange in India. If SST is such a wonderful measure then why are we having all the talks around us regarding its removal? I firmly believe if somebody looks at the data (Broking volumes have been falling), SST has to be completely removed. In the present scenario budget has to focus on two key aspects, reviving investment cycle and reviving growth momentum. For this the Union budget should remove SST even if it means some increase in short term or long term capital gain tax. In current situation investors will come only where there is liquidity, which is provided by intra-day traders, financiers and hedgers. For them SST is a major dampener.
FMS II DU
(This entry is part of our FE MASTERMIND contest. The views expressed in this article are personal and not that of the newspaper.)