Stamp Duty on Off Market Deals Postponed to 01/04/2020- Message Received

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July 05, 2020

Unlisted Shares -Stamp Duty wef 01/07/2020- Please Recheck 

http://www.rareindianshares.info/2020/07/unlisted-shares-stamp-duty-wef-01072020.html 

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Blog Credit : We are grateful to Prabodh Gupta for sending us this message :-

 stamp duty on off market transactions in demat has been postponed and now effective from 1.4.20.

 Regarding Stamp duty to be paid upfront for off-market transfers involving consideration and pledge invocation.

Please note that NSDL and CDSL vide its attached circular invited attention to Circular No. NSDL/POLICY/2019/0086 dated December 12, 2019 regarding Government of India notification regarding the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019.

Depositories have informed that the Central Government Notification dated January 08, 2020 has postponed the said enforcement and the rule will come into force on Wednesday, April 01, 2020 (

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OLD POST 

January 09, 2020

Stamp Duty On All Off Market Trades wef 09/01/2020 ?

Blog Caution : Please Recheck , independently from Taxation experts ,all information / interpretation of its effect on Unlisted Shares Transfers

Blog : Govt is imposing one tax after another on the Share Bazaar transactions and investments. Govt. is confiscating ( after 7 years pendendency ) investors' dividends / shares . This is very unfair. Govt. should impose some sort of tax on super Rich Farmers , many of whom own land worth tens of crores .

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Pleaseclick :-

https://economictimes.indiatimes.com/markets/stocks/news/share-transfers-to-turn-costlier-from-january-next-year/articleshow/72483727.cms?from=mdr

Attention is invited to NSDL circular no.  NSDL/POLICY/2020/0002  dated January 6, 2020 and CDSL  communique number CDSL/OPS/DP/POLCY/2020/8  dated January 3, 2020  regarding the Central Government notification, for Collection of stamp-duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019  to be levied on Off Market Instructions and Pledge Invocation Instructions compulsorily before transfer/execution of instruction from January 9, 2020.

Accordingly, kindly note that stamp duty needs to be paid upfront for off-market transfers involving consideration and pledge invocation before executing the transaction in NSDL/CDSL system. 

Rate of Stamp Duty is specified in schedule I of the Indian Stamp Act, 1899. We may refer to the schedule I for the rates. Rates have been specified for following three categories viz. Debentures, Securities other than debentures & Government Securities. The rate of stamp duty specified for Government Securities is 0%.