Guidelines for submission of Form for Securities Transaction Tax
Format, Procedure and Guidelines for submission of Form No. 1, Form No. 2 and Form No. 2A for Securities Transaction Tax (STT)- Notification No. 2 of 2022
As per Section 101 of the Securities Transaction Tax, every recognized stock exchange or the prescribed person in the case of every Mutual Fund [or insurance company] [or the lead merchant banker in the case of an initial public offer] [or an initial offer] shall, within the prescribed time after the end of each financial year, prepare and deliver or cause to be delivered a return to the Assessing Officer or to any other authority or agency authorized by the Board.
- For the purposes of filing of Securities Transaction Tax return electronically, CBDT has issued Notification No. 9/2022 dated 18.01.2022. As per the notification, a new class of person i.e. Insurance Company has been made responsible for collection and payment of securities transaction tax. A new Form No. 2A has also been introduced as per the said notification, to be filed by Insurance Company for furnishing Securities Transaction Tax return. The new sub rule 2A of rule 7 empowers Director General of Income Tax (Systems) to specify the procedures, formats and standards for ensuring secure capture and transmission of data.
- All eligible reporting institutions having obligation to submit Securities Transaction Tax return are requested to submit the registration information as per Annexure A and send the signed copy in pdf format (size upto 1Mb) on ITD official email id at [email protected] .The guidelines for preparation and submission of Securities Transaction Tax Return have been mentioned in the STT Rules 2004 amended via notification 9 of 2022. The format of return (Form No. 1, Form No. 2 and Form No. 2A) to be submitted is given in Annexure B. The data structure rules are enclosed in Annexure C . Notification of 2004, Securities Transaction Tax, Rules dated 29.09.2004 may be referred for class of persons responsible for filing Form No. 1 and Form No. 2. The new rule 5A inserted via Notification No. 9/2022 may be referred for class of persons responsible for filing Form No. 2A.
- All the Reporting Institutions (class of person responsible) as defined in the Securities Transaction Rules 2004 and further modified by Securities Transaction Tax (1st Amendment), Rules,2022 dated 18th January 2022 are required to prepare the data file in prescribed format from their internal system. Reporting Institutions are required to submit the data files using SFTP Server using the login credentials (To be communicated separately).
Also Read:
- Section 194S: Payment on transfer of virtual digital asset
- New sections on Virtual Digital Assets under the income tax
- Guidelines for removal of difficulties under sub-section (2) of section 194R of the Income-tax Act, 1961
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