Budgetary exercise finally gets parliamentary nod after Finance Bill corrects STT rates
1 min read 27 Mar 2023, 07:14 PM ISTThe Finance Bill introduced and passed by Lok Sabha on Friday had errorneously put the increase in STT rates on options from 0.017% to 0.021% instead of an Increase from 0.05% to 0.0625%
PremiumLok Sabha On Monday cleared fresh amendment to the Finance Bill, 2023 as recommended by the Rajya Sabha without discussion amid continued sloganeering by the Opposition benches that stuck with their demand for a joint Parliamentary probe into allegations against the Adani Group.
Earlier, Finance Minister Nirmala Sitharaman moved fresh amendment to the Finance Bill in Lok Sabha amid the din to correct the figures with regards to the securities transaction tax (STT) on options and futures trade.
The Finance Bill introduced and passed by Lok Sabha on Friday had errorneously put the increase in STT rates on options from 0.017% to 0.021% instead of an Increase from 0.05% to 0.0625%. Though the correction was provided by the finance ministry on the same day, it was corrected by the Rajya Sabha.
The upper house returned the Finance Bill with recommendation on Monday, which has been laid in the Lok Sabha on the same day.
The fresh amendment comes after the Bill was cleared by the lower house with 64 amendments on Friday.
With the corrected figures of STT on the sale of options on a turnover of Rs1 crore, the levy will rise from ₹5,000 to ₹6,250 earlier. The amended Bill has also raised STT on futures contracts from 0.01% to 0.0125%, thus attracting a levy of ₹1,250 on ₹1 crore turnover, up from ₹1,000 earlier.
With the passage of the emended Bill, the Parliamentary exercise with respect of the Union Budget has come to an end. The government can now notify changes in tax rates most of which will come into effect from April 1.
