New Delhi: A number of significant developments that will take effect on October 1, 2024, should be noted by investors as the Indian markets continue their recent bull run. The Securities Transaction Tax (STT) has increased, stock exchange transaction fees have been amended, and new share buyback taxation regulations have been implemented. Below is a summary of the changes that will take effect on tomorrow.
Revised Transaction Charges for NSE and BSE
The transaction fees for the cash and futures and options (F&O) divisions have been revised, according to announcements made by the stock exchanges BSE and NSE. These adjustments are in response to SEBI’s instruction to all market infrastructure organisations to adopt a single, flat charge structure.
Transaction fees for Sensex and Bankex equities derivatives options contracts on the BSE would be Rs 3,250 for each crore of premium turnover. Other equity derivative contracts continue to have the same fees.
The transaction charge for the cash market has been established by the NSE at Rs 2.97 per lakh of traded value. The cost will be Rs 1.73 per lakh of traded value for equities futures and Rs 35.03 per lakh of premium value for equity options.
The currency derivatives segment charges Rs 0.35 per lakh of traded value for futures and Rs 31.10 per lakh of premium value for options, including interest rate options.
Hike in STT
The STT increase for trading in futures and options was announced earlier this year by Finance Minister Nirmala Sitharaman, and it will likewise take effect on October 1.
– The STT for futures trading has increased from 0.0125 percent to 0.02 percent. The STT for trading options will increase to 0.1%.
New Buyback Taxation
Share buyback revenue will be subject to shareholder taxation, much like dividend income, as of October 1. This indicates that the tax will be levied in accordance with the applicable income tax slab of the taxpayer.
