Sold equities and want to pay less capital gains tax by using Securities Transaction Tax (STT)? Find out if you are eligible to do so
Intraday stock traders can lower their capital gains tax by adding Securities Transaction Tax (STT) in their acquisition cost, unlike regular investors. This reduces net capital gains. But equity investors taking delivery of securites can't add STT to their cost of acquisition and doing so can trigger income tax notices. Read below to know more about capital gains tax on equities.
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Time of India
3 days ago
- Time of India
Sold equities and want to pay less capital gains tax by using Securities Transaction Tax (STT)? Find out if you are eligible to do so
Synopsis Intraday stock traders can lower their capital gains tax by adding Securities Transaction Tax (STT) in their acquisition cost, unlike regular investors. This reduces net capital gains. But equity investors taking delivery of securites can't add STT to their cost of acquisition and doing so can trigger income tax notices. Read below to know more about capital gains tax on equities.
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Business Standard
21-06-2025
- Business Standard
Net direct tax collection drops by 1.39% to Rs 4.58 trillion so far in FY26
Net direct tax collections till June 19 in the financial year 2025-26 (FY26) dipped by 1.39 per cent year-on-year to Rs 4.58 trillion, due to higher refunds, income tax relaxation provided to salaried individuals and the impact of increased capital expenditure by companies. Of this, non-corporate tax - which includes taxes paid by individuals, Hindu Undivided Families, firms, bodies of individuals, associations of persons, local authorities, and artificial juridical person - grew marginally by 0.71 per cent on yearly basis to Rs 2.72 trillion during the same period. Net corporate tax during the same period declined by 5.13 per cent to Rs 1.72 trillion, while securities transactions tax (STT) increased by 12.13 per cent to Rs 13,013 crore, according to the data. According to Samir Kanabar, tax partner with EY, the marginal dip in net tax collections is majorly due to tax relaxation given to salaried class in the Union Budget 2025. 'Since individuals are paying less tax, the government is receiving lower Tax Deducted at Source (TDS) from salaries. On the corporate side, the fall in tax collection is partly because companies are getting large refunds and also because many of them have made big Capex investments," said Kanabar. "When businesses spend on setting up factories, buying machinery, or expanding operations, they get tax deductions under the Income Tax Act, which reduces their taxable income and ultimately lowers the Corporate Income Tax they pay,' he added. Gross direct tax collections increased by 4.86 per cent year-on-year to Rs 5.45 trillion, while refunds rose significantly by 58.04 per cent to Rs 86,385 crore during the same period. Of the total refund, major chunk comprised of corporate refunds totalling Rs 76,832.08 crore which grew by 67.31 per cent. According to experts, this refund relates to past years which may have been cleared now. Of the total gross direct tax, corporate tax amounted to Rs 2.49 trillion, non-corporate tax contributed Rs 2.82 trillion , STT totalled Rs 13,013 crore and other taxes stood at Rs 259.61 crore. "The growth in corporate tax collections appears to be broadly in line with expected profit growth. In the case of non-corporates, collections may have been impacted by lower bonus payouts and modest salary increments. As for refunds, these likely pertain to previous assessment years and may simply reflect bunching of processing activity towards the end of the first quarter," said Madan Sabnavis, chief economist at Bank of Baroda. Meanwhile, advance tax collections registered a moderate growth of 3.87 per cent in the first quarter of FY26. This is in comparison to last year's year-on-year growth of 27.34 per cent. Advance tax is paid by individuals and businesses in four installments within specific dues dates - June 15, September 15, December 15 and March 15. The non-corporate advance tax decreased by 2.68 per cent on year to Rs 33,928.32 crore till June 19, in FY26, while corporate advance tax rose by 5.86 per cent to Rs 1.21 trillion during the same period. The Centre is estimated to collect Rs 25.2 trillion as direct taxes in FY26. Net direct tax collection in FY25 grew at 13.57 per cent to Rs 22.26 trillion, exceeding the initial budgeted target of Rs 22.07 trillion.
Indian Express
21-06-2025
- Indian Express
Advance tax collection growth slows to 3.9%, income tax mop-up lower than FY25 level
Advance direct tax collections from the first installment in the current financial year 2025-26 grew by 3.87 per cent to Rs 1.56 lakh crore as on June 19 this year, slower than the growth of 27.34 per cent seen in the same period a year ago, data released Saturday by the Income Tax Department showed. While advance tax collections during April 1-June 19 for corporate tax grew 5.86 per cent to Rs 1.22 lakh crore, personal income tax or non-corporate tax collections recorded a slowdown, with advance collections falling by 2.68 per cent to Rs 33,928.32 crore. The advance tax collections for personal income at Rs 33,928.32 crore are lower than the first installment collections of Rs 34,863.78 crore seen in the previous financial year 2024-25 (as on June 19, 2024). The slower growth in advance tax collections for personal income tax seems to be more pronounced, a possible indication of the impact of the income tax cuts undertaken in the Budget as well as slowing income growth. Non-corporate tax includes taxes paid by individuals, Hindu Undivided Families (HUFs), firms, Association of Persons (AoPs), Body of Individuals (Bols), local authorities, artificial juridical persons. Every person, whose estimated tax liability for the financial year is Rs 10,000 or more, is required to pay his or her taxes in advance in the form of 'advance tax'. The advance tax has to be paid in four installments during the year. The first installment has to be paid on or before June 15 with payment of not less than 15 per cent of the advance tax. The second installment has to be paid on or before September 15 with 45 per cent advance tax as reduced by the amount paid in the earlier installment. The third installment requires 75 per cent to be paid on or before December 15, followed by 100 per cent payment on or before March 15. Overall, growth in net direct tax collections so far until June 19 also slipped into negative territory, declining 1.39 per cent to Rs 4.59 lakh crore from Rs 4.65 lakh crore in the corresponding period of the previous financial year. The net collections were lower as refunds increased by 58 per cent to Rs 86,385 crore until June 19 this year. Gross direct tax collections, however, rose 4.86 per cent to Rs 5.45 lakh crore this fiscal. Net corporate tax collections slowed to Rs 1.73 lakh crore, down 5.13 per cent from the year-ago period. Personal income tax or non-corporate tax collections increased marginally by 0.7 per cent to Rs 2.73 lakh crore. Securities Transaction Tax (STT) increased by 12 per cent to Rs 13,013 crore during the period. Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports on the macro economy and fiscal policy, with a special focus on economic science, labour trends, taxation and revenue metrics. With over 13 years of newsroom experience, she has also reported in detail on macroeconomic data such as trends and policy actions related to inflation, GDP growth and fiscal arithmetic. Interested in the history of her homeland, Kashmir, she likes to read about its culture and tradition in her spare time, along with trying to map the journeys of displacement from there. ... Read More
