With multiple taxes on stocks and stock-based investments, it is expected that the STT will be reduced to give some relief to investors.

Currently, investors who invest in listed and unlisted equities, derivatives, options, ETFs (Exchange Traded Funds) and equity-focused mutual funds (MFs) must pay securities transaction tax ( STT) on securities transactions.

The rate of STT ranges from 0.001% in case of ETF to 0.2% in case of IPO (IPO).

With several taxes – income tax on dividend income, capital gains tax on gains, etc. – applicable to equity and equity-oriented investments, it is expected that the STT will be reduced to provide some relief to investors.

Speaking about what he expects from the Union budget for the financial year 2022-23 which will be presented on February 1, 2022, CA Karan Batra, Founder and CEO of CharteredClub.com said: “I expect STT fares are reduced. ”

While the STT is expected to be reduced, gains from cryptocurrency investments – which so far are not taxed – would be placed under the tax net.

As cryptocurrencies are not considered a valid asset or instrument in India, trading and investing in cryptocurrencies are also not recognized as valid investments till now. In fact, the Reserve Bank of India (RBI) in April 2018 banned trading, investing and holding in India. In March 2020, however, the Supreme Court of India overturned the RBI crypto ban order.

Faced with the identity crisis, cryptos have so far escaped the tax net. However, with the estimated holding of crypto assets in India exceeding $600 million in 2021, the government is seriously considering passing the gains from crypto investments under the tax net.

“I also expect all crypto investments to be disclosed in the ITR (income statement) and also in the SFT (financial transaction statement). Many crypto investors do not pay taxes on gains made from crypto investments and this could be from a government perspective,” Batra said.

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