Revised transaction fee on stock exchanges, TDS rates come into effect

BILKULONLINE

Mumbai, Oct 1: The Indian stock exchanges on Tuesday revised their transaction fees for cash and futures and options trading, as other changes related to TDS and government bonds came into effect.

According to the National Stock Exchange (NSE), the transaction fee for the cash market will now be Rs 2.97 per lakh of traded value. For equity futures, the fee will be Rs 1.73 per lakh of traded value. As per the exchange, the fee for equity options will be Rs 35.03 per lakh of premium value.

In the currency derivatives segment, futures will incur a fee of Rs 0.35 per lakh of traded value. Also, options which include interest rate options, will have a fee of Rs 31.10 per lakh of premium value. In the Union Budget, the government had announced to increase the securities transaction tax (STT) on Futures and Options of securities to 0.02 per cent and 0.1 per cent, respectively.

When it comes to revised TDS rates, a 10 per cent TDS will be applied to certain Central and state government bonds, including floating rate bonds. There is a Rs 10,000 threshold limit, after which the tax is deducted.

Meanwhile, under Income Tax Section 194-IB, the TDS on payment of rent by Hindu Undivided Family (HUF) or certain individuals has been reduced to 2 per cent from the previous 5 per cent. Under Section 194G, the commission on the sale of lottery tickets has lowered to 2 per cent from 5 per cent. The interest rate for the popular post office savings deposits schemes as well as PPF will remain unchanged at 4 per cent and 7.1 per cent.

From October 1, the option to use an Aadhaar enrolment ID instead of the Aadhaar number for PAN allotment is no longer available. Indian citizens will no longer need to disclose their Aadhaar enrollment ID in PAN allotment documents, or while filing IT returns.