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

CBDT has notified the ‘Securities Transaction Tax (1st Amendment), Rules, 2022‘ to insert new STT Rule 5A on ‘Person responsible for collection and payment of STT in the case of Insurance Company’ and to amend STT Rules 6, 7 & 8. Also CBDT has inserted new STT FORM 2A for STT Return by an Insurance Company, vide Notification 9/2022 dt. 18/01/2022.

CBDT Income Tax Notification 9/2022 dt. 18/01/2022: Securities Transaction Tax (1st Amendment), Rules, 2022

G.S.R. 25(E).- In exercise of the powers conferred section 114 of the Finance (No. 2) Act, 2004, (23 of 2004), the Central Government hereby makes the following rules to amend the Securities Transaction Tax Rules, 2004, namely:-

1. Short title and commencement.-

(1) These rules may be called the Securities Transaction Tax (1st Amendment), Rules, 2022.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Securities Transaction Tax Rules, 2004 (hereinafter referred to as the principal rules), after rule 5, the following rule shall be inserted, namely:-

5A. Person responsible for collection and payment of securities transaction tax in case of Insurance Company.-

In the case of an insurance company, the person responsible for collection and payment of securities transaction tax in accordance with sub-sections (2), (3) and (4) of section 100 of the Act, shall be the managing director or a whole-time director, as defined in clauses (54) and (94) of section 2 of the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors of such company in this behalf.

3. In the principal rules, for rule 6, the following rule shall be substituted, namely:-

6. Payment of securities transaction tax.-

Every recognised stock exchange, or the trustee of every Mutual Fund or such other person managing the affairs of the mutual fund as may be duly authorised by the trustee in this behalf, or the managing director or a whole-time director, as defined in clauses (54) and (94) of section 2 of the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors of an insurance company, who is required to collect and pay securities transaction tax under section 100 of the Act, shall pay the amount of such tax to the credit of the Central Government by remitting it into any branch of the Reserve Bank of India or of the State Bank of India or of any authorised bank accompanied by a securities transaction tax challan.

4. In the principal rules, in rule 7,-

(i) in sub-rule (1), after clause (b), the following clause shall be inserted, namely:-

(c) in the case of an insurance company, be in Form No. 2A and be verified in the manner indicated therein.

(ii) for sub-rule (2), the following sub-rules shall be substituted, namely:-

(2) The return in Form No. 1, Form No. 2 and Form No. 2A referred to in sub-rule (1) shall be furnished electronically either under digital signature or electronic verification code.

Explanation.- For the purposes of this sub-rule “electronic verification code” means a code generated for the purpose of electronic verification of the person furnishing the return of income as per the data structure and standards specified by Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).

(2A) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the returns in Form No. 1, Form No. 2 and Form No. 2A.

(iii) after sub-rule (3), the following sub-rule shall be inserted, namely:-

(3A) In case of an insurance company, the return referred to in sub-rule (1) shall be furnished by the managing director or a whole-time director, as defined in clauses (54) and (94) of section 2 of the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors of such company in this behalf.

5. In the principal rules, in rule 8, after clause (b) the following clause shall be inserted, namely:-

(c) in the case of an insurance company by the managing director or a whole-time director as defined in clauses (54) and (94) of section 2 of the Companies Act, 2013 (18 of 2013) a duly authorised by the Board of Directors of such company in this behalf.

6. In the principal rules, in the APPENDIX, after Form No. 2, the following Form shall be inserted, namely:-

FORM NO. 2A
[See rule 7 of Securities Transaction Tax Rules, 2004]
Return of Taxable Securities Transactions for Insurance Company
[please refer above attachment for detailed format]

Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Subsection (ii) vide notification number S.O. 1059(E), dt. 28/09/2004.

Related Posts:

New IT Rule 8AD on Computation of Capital Gains from ULIPs u/s 45(1B)

Leave a Reply