Sharemarket pe STT Tax is illegal? 3 taxes on every share-trade simplified- CGT, STT & Stamp Duty

1. 👩🏻‍🏫 FREE Monthly Current Economy Class Live on Unacademy App at 9PM Wednesday: https://unacademy.com/class/mrunals-economy-monthly-current-2025-oct-for-all-exams/JZU5Y1DK ### YouTube Description In this explosive lecture, renowned UPSC Educator and Economy Expert Dr. Mrunal Patel breaks down the shocking reality of THREE taxes hitting every stock market trade in India – even when you're losing money! A stock broker has filed a PIL in the Supreme Court demanding removal of Securities Transaction Tax (STT), calling it unconstitutional. Will STT really be scrapped? Dr. Patel analyzes the 6 key arguments, counters them with logic, and reveals Supreme Court's stance from past landmark cases. Perfect for UPSC CSE, SSC-CGL, State PSC, Banking, IBPS, RBI Grade B, CAPF, CDS, APFC, and all competitive exam aspirants mastering Indian Economy. 🚨 Key Highlights: - **3 Taxes on Shares**: Capital Gains Tax (on profits only, 12.5%-20% based on holding period), State Stamp Duty, and Central STT – applied on full transaction value! - **Loss Example**: Buy Paytm IPO at ₹2150, sell at ₹1560 (27% loss) – NO Capital Gains Tax, but STILL pay Stamp Duty + STT on ₹1560! - **PIL Arguments Against STT**: 1. Violates Article 19 (Right to Trade) – tax even on losses. 2. Triple taxation on same transaction. 3. Introduced in 2004 to curb tax evasion/money laundering – now obsolete with PAN-Demat linkage & digitization. 4. No STT in USA, Singapore, Japan – why India? 5. No refund like TDS (explained with Doordarshan example). 6. Unadjustable in losses unlike Capital Gains offset. - **Counter-Arguments**: Multiple taxes exist elsewhere (e.g., Apple iPhone: Customs + GST + Corporation Tax). STT prevents evasion; losses offset in Capital Gains. - **Supreme Court Precedents** (Last 5 Years): - **Hydro Electricity**: Himachal's extra Water Cess invalid – interstate rivers in Union List. - **Alcohol**: Excise/VAT on liquor (State); GST on industrial alcohol (Union) – both allowed per Lists. - **Mining**: GST + State Royalty + Land Revenue – ALL valid under Constitution's Union/State Lists. - **Conclusion**: STT likely to stay – follows Union List powers. Stamp Duty valid as contract registration (State List), rates set by Center, revenue to buyer's state. # Links 2. 👩🏻‍🏫 Join Unacademy course for UPSC preparation https://unacademy.com/goal/upsc-civil-services-examination-ias-preparation/KSCGY/subscribe?plan_type=plus&referral_code=mrunal.org 3. 📘 Amazon pe Mrunal’s Economy Book: https://amzn.to/3Jb5rf7 4. 📆 Free Annual economy updates Win25: Mrunal.org/win25 5. 💾 Free Download the topicwise PYQ paperset, monthly current affairs magazine, & more from https://unacademy.com/content/upsc/downloads/ ### SEO Tags: STT tax removal, securities transaction tax India, share market taxes explained, capital gains tax on stocks, supreme court PIL STT, stock market triple taxation, UPSC economy lecture, Mrunal Patel economy, stamp duty on shares, Paytm IPO loss tax, TDS refund explained, Indian stock market taxes 2025, STT vs capital gains, unconstitutional tax on losses, SEBI taxes, NSE BSE transaction tax, UPSC CSE preparation, SSC CGL economy, banking exam economy, RBI grade B economy, competitive exams India