InvestorQ : I just read that SEBI is proposing to tweak the STT norms for ITM options. Is it true?
Bhavika Nehru made post

I just read that SEBI is proposing to tweak the STT norms for ITM options. Is it true?

Answer
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Bhavik Nehru answered.
2 years ago


The tweaking of the methodology of option expiry is proposed will enable traders to select whether they want to exercise the option or not. If they select “NO”, then the option will not be exercised on the expiry date. Of course, in that case it will be treated as a speculative income and taxed accordingly and then it cannot be classified as business income. The idea is that the trader will have a clear choice as to how he wants the transaction to be treated and will be imposed STT accordingly.