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Adapting day trading in derivatives to a higher STT regime

It’s not just trading profits but a host of factors such as bid/ask spreads, impact costs and turnaround time which could get affected temporarily by the increase in securities transaction tax rates

March 28, 2023 / 08:24 AM IST
Adapting day trading in derivatives to a higher STT regime

• The take home profits of a trader will be reduced to the extent of the increase in taxation, other things remaining constant.

Highlights The STT on options and futures has been increased by 25 percent This has several implications for traders, apart from the obvious one of higher transaction costs Here are a list of dos and don’ts for traders that can help them navigate the higher tax regime without getting hurt badly Recent amendments to Budget 2023 have raised the securities transaction tax and commodities transaction tax by 25 percent on options and futures. Selling futures will now attract Rs 1,250 per crore of...

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