Consider the following statements:

In India, taxes on transactions in Stock Exchanges and Futures Markets are:

1. levied by the Union
2. collected by the States

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Explanation

Statement 1 is correct

• The securities transaction tax is a direct tax levied by the Government of India on every transaction executed on recognized stock exchanges

Statement 2 is incorrect

• States have no jurisdiction over stock/futures market taxation.

Answer: (a) 1 only