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The Central Board of Direct Taxes amends the Securities Transaction Tax Rules, 2004 to include insurance companies. The managing director or a whole-time director of an insurance company collects and pays the securities transaction tax. The insurance company files the return in Form No. 2A electronically under a digital signature or an electronic verification code. The rules take effect immediately on the date of publication in the Official Gazette.
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MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 18th January, 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:─
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.
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.”.
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.”.
In the principal rules, in rule 7, —
“FORM NO. 2A [See rule 7 of Securities Transaction Tax Rules, 2004] Return of Taxable Securities Transactions for Insurance Company
S.No
Name of the Insurance Company:
Date of Registration/Incorporation under the Companies Act, 2013
d d m m y y y y
Permanent Account Number (PAN)
Financial Year for which transaction is being reported
Jurisdictional Assessing Officer
Number of equity oriented funds
Value of taxable securities transactions
Total securities transaction tax collectible
Total securities transaction tax collected
Total securities transaction tax paid
Securities transaction tax payable/refundable
Interest payable under section 104
Interest paid
Details of Equity Oriented Funds with respect to Unit Linked Insurance Policies issued by the Insurance company on or after the first day of February, 2021
| S.No | Name of equity oriented fund | Unique Client Code of the fund | Folio number of person from whom units purchased | Name of person from whom units purchased | PAN of person from whom units purchased | Value of taxable securities transaction (in Rs.) | Securities transaction tax Collectible (in Rs.) | Securities transaction tax collected (in Rs.) |
|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
| S.No | Month | Name of equity oriented fund | Unique Client Code of the fund | Value of taxable securities transaction (in Rs.) | Securities transaction tax Collectible (in Rs.) | Securities transaction tax collected (in Rs.) | Securities transaction tax Paid (in Rs.) | Interest payable under section 104 | Interest paid under section 104 |
|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Total |
| Tax/Interest (In Rs.) | Name of the bank branch | BSR code of the bank branch | Date of deposit | Serial No. of Challan | Amount (In Rs.) |
|---|---|---|---|---|---|
| 11 | 12 | 13 | 14 | 15 | 16 |
VERIFICATION I, ........... (full name in block letters), son/ daughter of ............ solemnly declare that to the best of my knowledge and belief the information given in this return is correct and complete and that the total value of taxable securities transactions and other particulars shown therein are truly stated and are in accordance with provisions of Chapter VII of the Finance (No.2) Act, 2004 and the Securities Transaction Tax Rules, 2004. I further declare that I am making this return in my capacity as ......... and I am also competent to make this return and verify it. Date: ......... Place ......... (Name and Signature)
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