Sebi wish list for Budget 2017: Here are the key points The regulator has recommended lowering the STT for tax trading
Ahead of Union Budget 2017, the capital market regulator Securities and Exchange Board of India (Sebi) has sent its list of recommendations to the Finance Ministry. Sebi has asked the government to encourage stock trading and investments in mutual funds by easing tax rules.
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The regulator has also recommended lowering the securities transaction tax (STT) for tax trading and a slew of other measures, a report published in Economics Times said. Lower STT for trading After its introduction in 2004, STT was fully deductible against the income tax payable. But, after four years, an amendment was made to allow STT as a deductible business expenditure and the rebate under section 88E was also withdrawn. Now, Sebi has recommended lowering the STT for tax trading. The government has been collecting around Rs 7,400 crore from securities transaction tax (STT) for the last couple of years, a Business Today report said.
Increase limit for tax-saving equity mutual fund For relief under Section 88E, Sebi has recommended an increase in the investment limit for tax-saving equity mutual fund schemes from Rs 1.5 lakh to Rs 2 lakh. “Sebi has written to the government that rebates under Section 88E for STT paid should be restored,“ ET quoted a senior regulatory official as saying. LTCG on debt mutual funds The regulator has suggested reducing the holding period of debt mutual funds from 36 months to 12 months for consideration of long-term capital gains (LTCG).
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