Cbdt Notifies Guidelines For Submission Of Stt Return

The Central Board of Direct Taxes (CBDT) issues Notification No. 02/2022 dated 24th June 2022 and prescribes the Format, Procedure, and Guidelines for submitting Securities Transaction Tax (STT) return electronically in Form No. 1, Form No. 2 and Form No. 2A. STT returns are annual and must be furnished on or before 30th June, immediately following the Financial Year in which such Securities Transaction Tax is collected. The present article briefs the Guidelines for submission of STT return.

Securities Transaction Tax (STT)

Securities Transaction Tax is a type of direct tax payable in India on the value of taxable securities transacted through a recognized stock exchange. Every person who is liable to pay Securities Transaction Tax (STT) is required to deposit the same on or before the 7th of the month following the month in which such Securities Transaction Tax is collected/deducted.

Securities Transaction Tax (STT) Return

Recognized Stock Exchange/ Recognized Mutual Fund / Insurance Company should file an annual return in the prescribed format on or before 30th June of the Financial Year succeeding the Financial Year in which such Securities Transaction Tax is collected.

Securities Transaction Tax (1st Amendment), Rules, 2022

The CBDT vide Notification No. 9/2022, dated 18-01-2022, has amended the Securities Transaction Tax (STT) Rules, 2004 and introduced the Securities Transaction Tax (1st Amendment), Rules, 2022 wherein the sub-rule (2) to Rule 7 was substituted to mandate the electronic filing of STT returns by an Insurance Company. Know more about the Securities Transaction Tax (1st Amendment), Rules, 2022

Due Date for Filing STT Return

As mentioned above STT returns shall be furnished on or before 30th June, immediately following the Financial Year in which the transaction has been recorded.

Eligible Person for Filing STT Return

As per Section 101 of the Securities Transaction Tax, the following persons must submit the STT Return to the Assessing Officer within the prescribed time after the end of each financial year.

Every recognized stock exchange
The prescribed person in the case of every Mutual Fund
Insurance company
The lead merchant banker in the case of an initial public offer

The request for creation of SFTP User For filing of Securities Transaction Tax (STT) Return

All eligible reporting institutions having an obligation to submit Securities Transaction Tax returns are requested to submit the registration information and send the signed copy in pdf format to ITD official email id.

Revised Form No. 1 – Return of Taxable Securities Transactions for recognized stock exchanges

The CBDT has introduced the revised Form No. 1 for filing the Return of Taxable Securities Transactions for recognized stock exchanges. The recognized stock exchanges need to provide the following details in form 1 for filing STT Return:

Name of the Stock Exchange
Address of the Stock Exchange
Permanent Account Number (PAN)
Financial Year
JURISDICTIONAL WARD/ CIRCLE/ RANGE
Total Value of taxable Securities transactions
Securities transaction tax Collectible
Total Securities Transaction tax collectible
Total Securities Transaction tax collected
Total Securities Transaction tax paid
Securities Transaction Tax Payable/ Refundable
Interest payable u/s 104
Interest Paid

Form No. 2 - Return of Taxable Securities Transactions For Mutual Funds

The CBDT has introduced the revised Form No. 1 for filing the Return of Taxable Securities Transactions for recognized stock exchanges. The Mutual Funds needs to provide the following details in form 2 for filing STT Return:

Name of the Mutual Funds
Date of registration of trust deed for the mutual fund under the Indian Registration Act
Names and addresses of trustees
Name of Asset Management Company for the fund
Address of Asset Management Company for the fund
PAN of Asset Management Company for the fund
Financial Year
JURISDICTIONAL Ward/ Circle/ Range
Number of equity-oriented funds
Value of taxable securities transactions
Details of Total securities transaction tax
Securities transaction tax payable/refundable
Interest payable/Interest Paid

Form No. 2A - Return of Taxable Securities Transactions for Insurance Company

The CBDT has also notified Form no. 2A for filing of return of Taxable Securities Transactions for Insurance Company. The insurance company needs to provide the following details in the form 2A for filing STT Return:

Name of the Insurance Company
Date of Registration/Incorporation under the Companies Act, 2013
Permanent Account Number (PAN)
Number of equity-oriented funds
Value of taxable securities transactions
Total securities transaction tax collectible/collected/paid
Securities transaction tax payable/refundable
Interest payable under section 104/ Interest paid
Details of Equity Oriented Funds concerning ULIP
Details of securities transaction tax

Guidelines for Filing STT Return

CBDT announced that. An eligible person can refer to Notification of 2004, Securities Transaction Tax, Rules dated September 29, 2004, for filing Form No. 1 and Form No. 2. The new rule 5A inserted via Notification No. 9/2022 may be referred to as a 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 Notification dated 18-01-2022 are required to prepare the data file in the prescribed format from their internal system. Reporting Institutions are required to submit the data files using SFTP Server using the login credential. Form No. 1, Form No. 2 and Form No. 2A is required to be signed, verified, and furnished by the class of person responsible as defined in the Securities Transaction Rules 2004 and further modified by Securities Transaction Tax (1st Amendment), Rules, 2022 dated January 18, 2022. The return of Securities Transaction Tax shall be furnished on or before the 30th of June, immediately following the financial year in which the transaction has been registered or recorded.

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Frequently Asked Questions

Common questions about Securities Transaction Tax Filing Guidelines 2022.

A Securities Transaction Tax (STT) return is an annual return that must be filed by recognized stock exchanges, mutual funds, and insurance companies to report the STT collected on taxable securities transactions during the financial year. It must be filed electronically on or before June 30th following the end of the relevant financial year.

According to Section 101 of the Securities Transaction Tax law, the following entities are required to file an STT return: every recognized stock exchange, the prescribed person for every mutual fund, insurance companies, and the lead merchant banker in case of an initial public offering.

The STT return requires details such as the name and address of the reporting entity, their Permanent Account Number (PAN), the financial year, the total value of taxable securities transactions, the total STT collectible/collected/paid, any STT payable or refundable, and interest payable or paid under Section 104.

The STT return must be filed on or before June 30th immediately following the financial year in which the taxable securities transactions were recorded.

The CBDT has notified that STT returns must be filed electronically. Reporting entities need to prepare data files in the prescribed format from their internal systems and submit them using the SFTP server with login credentials provided by the Income Tax Department.

There are three forms prescribed for filing the STT return - Form No. 1 for recognized stock exchanges, Form No. 2 for mutual funds, and Form No. 2A for insurance companies.

Yes, the Income Tax Act provides for penalties and interest for delayed filing or non-filing of the STT return. Interest is payable under Section 104 for any delay in payment of STT.

The CBDT guidelines do not explicitly mention the provisions for revising an STT return after filing. However, it is advisable to file the return carefully with accurate information to avoid any complications or penalties.

The CBDT has issued detailed guidelines and notifications regarding the format, procedure, and rules for filing the STT return. These can be accessed on the Income Tax Department's website or through authorized tax professionals.

The CBDT guidelines do not differentiate between domestic and foreign entities for the purpose of filing the STT return. All recognized stock exchanges, mutual funds, insurance companies, and lead merchant bankers (in case of IPOs) operating in India are required to file the STT return as per the prescribed rules and formats.