Overview
- On Oct. 6, a bench of Justices J.B. Pardiwala and K.V. Vishwanathan issued notice to the Centre on a plea contesting STT.
- The matter is returnable in four weeks with the Finance Ministry directed to file its response.
- Petitioner Aseem Juneja argues STT causes double taxation and is punitive because it applies even when trades incur losses, violating Articles 14, 19(1)(g) and 21.
- The plea seeks either striking down STT or allowing STT paid to be credited against capital gains tax similar to TDS adjustments.
- The petition notes major markets such as the US, Germany, Japan and Singapore do not levy a comparable tax, and recalls STT’s 2004 introduction on exchange-traded transactions.