In which year did the Government of India introduce Securities Transaction Tax (STT) to reduce the complexities involved in the taxation of securities transactions, promote fair trading, and prevent market manipulation?​

Correct option is C

The correct answer is (c) 2004.

• The Securities Transaction Tax (STT) was introduced by the Government of India in the 2004 Union Budget.

• The main objective of STT was to simplify the taxation of securities transactions by imposing a tax at the point of transaction, rather than at the point of income realization.

• STT was designed to reduce the complexities involved in taxing securities transactions, promote fair trading, and reduce market manipulation.

Information Booster:

• STT is levied on the purchase and sale of securities listed on recognized stock exchanges.

• The tax is applied to transactions involving equity shares, derivatives, and mutual funds, and is payable by the buyer or seller, depending on the type of transaction.

• The introduction of STT has helped streamline the process of taxation for the securities market and created a transparent mechanism for the tax authorities.