Supreme Court Issues Notice on Plea Challenging Constitutional Validity of Securities Transaction Tax

The Supreme Court has issued notice to the Union Government on a writ petition challenging the constitutional validity of the Securities Transaction Tax (STT), levied on buying and selling of stocks and other securities on Indian exchanges under the Finance Act, 2004.

The petitioner, a stock trader, contended that the Securities Transaction Tax violates Articles 14, Article 19(1)(g), and Article 21, of Indian Constitution.

The petitioner argued that the tax constituted double taxation, as it was imposed even when traders incurred losses, and that taxing the mere act of practising a profession made it punitive.

The Court issued a notice, returnable within four weeks.

[Aseem Juneja v. Union of India]