CBDT amends Securities Transaction Tax Rules to include Insurance Cos

  • News|Blog|Income Tax|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 21 January, 2022

CBDT amends Securities Transaction Tax (STT) Rules to include insurance companies

Notification No. 9/2022, dated 18-01-2022

The Finance Act, 2021 has amended the Finance (No 2) Act, 2004 to make security transaction tax (STT) applicable on maturity or partial withdrawal with respect to a unit-linked insurance policy issued by the insurance company on or after the 01-02-2021, to which exemption under section 10(10D) does not apply on account of the applicability of the fourth and fifth proviso.

Consequent to amendment, the Central Government has notified the Securities Transaction Tax (1st Amendment), Rules, 2022 to amend the Securities Transaction Tax (STT) Rules, 2004.

A new Rule 5A has been inserted to specify that the managing director or a whole-time director is responsible for collecting and paying STT in the case of the Insurance Company. Further, The Govt. has also notified Form no. 2A for filing of return of Taxable Securities Transactions for Insurance Company.

Further, the return in Form No. 2A shall be furnished by the managing director or a whole-time director, duly authorised by the Board of Directors of such company on this behalf.

Click Here To Read The Full Notification

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied