Finance ministry considers taxing share transactions
New Delhi: The finance ministry is considering a proposal to tax all share transactions.
The government expects to net Rs 5,000 crore annually through the tax.

The proposal would bring transparency in the stock market operations. The proposal is expected to be considered by the government during the budget-making exercise for 2002-03.

It is proposed that the share transaction tax would be collected as tax deducted at source (TDS). There will be two slabs of the new tax - one for those dealing in shares and the other for investors selling shares directly.
The dealers will have to submit TDS at the rate of 0.25 per cent for every transaction. In the case of the investors selling shares directly, TDS will have to be submitted at the rate of 0.1 per cent.
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