The Hindu Business Line : Exchanges, MF trustees must file returns before June 30

STOCK exchanges and mutual fund trustees are required to submit their return of taxable securities transactions entered into during a financial year on or before June 30 immediately following that financial year.

The Central Board of Direct Taxes (CBDT) has prescribed this time period in its Securities Transaction Tax (STT) Rules 2004.

The Finance Act 2004 specifies that the Government would prescribe the time after the end of a financial year within which the taxable securities transaction returns have to be filed by every recognised stock exchange or a mutual fund.

The new STT regime comes into force from October 1. The STT Rules 2004 also specify the formats of the return that is to be submitted to the tax department by a stock exchange and a mutual fund trustee.

The STT Rules 2004 primarily spell out the method of determining the value of taxable securities transactions (other than transactions relating to a derivative). The STT rates are to be applied on the taxable value arrived at in accordance with the STT Rules 2004.

Besides purchase or sale of an equity share in a company or a derivative or a unit of an equity-oriented fund entered into in a recognised stock exchange, the sale of a unit of an equity-oriented fund to the mutual fund is also considered as a taxable securities transaction.

Mutual fund trustees or any person authorised to manage the affairs of a mutual fund have been mandated as persons responsible for collection and payment of STT.

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