MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 18th January, 2022

G.S.R. 25(E).— In exercise of the powers conferred section 114 of the Finance (No. 2) Act,
2004, (23 of 2004), the Central Government hereby makes the following rules to amend the
Securities Transaction Tax Rules, 2004, namely:─

1. Short title and commencement. - (1) These rules may be called the Securities Transaction Tax
(1st Amendment), Rules, 2022.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Securities Transaction Tax Rules, 2004 (hereinafter referred to as the principal rules), after
rule 5, the following rule shall be inserted, namely:—

“ 5A.Person responsible for collection and payment of securities transaction tax in case of Insurance
Company.- In the case of an insurance company, the person responsible for collection and payment of
securities transaction tax in accordance with sub-sections (2), (3) and (4) of section 100 of the Act, shall be
the managing director or a whole-time director, as defined in clauses (54) and (94) of section 2 of the
Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors of such company in this
behalf.”.
[भाग II—खण्ड 3(i)] भारत का रािपत्र : ऄसाधारण 5

3. In the principal rules, for rule 6, the following rule shall be substituted, namely: -

“ 6. Payment of securities transaction tax.- Every recognised stock exchange, or the trustee of every Mutual
Fund or such other person managing the affairs of the mutual fund as may be duly authorised by the trustee
in this behalf, or the managing director or a whole-time director, as defined in clauses (54) and (94) of
section 2 of the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors of an
insurance company, who is required to collect and pay securities transaction tax under section 100 of the
Act, shall pay the amount of such tax to the credit of the Central Government by remitting it into any
branch of the Reserve Bank of India or of the State Bank of India or of any authorised bank accompanied
by a securities transaction tax challan.”.

4. In the principal rules, in rule 7, —

(i) in sub-rule (1), after clause (b), the following clause shall be inserted, namely:—

“ (c) in the case of an insurance company, be in Form No. 2A and be verified in the manner indicated
therein.”;

(ii) for sub-rule (2), the following sub-rules shall be substituted, namely:—

“(2) The return in Form No. 1, Form No. 2 and Form No. 2A referred to in sub-rule (1) shall be
furnished electronically either under digital signature or electronic verification code.

Explanation.—For the purposes of this sub-rule "electronic verification code" means a code
generated for the purpose of electronic verification of the person furnishing the return of income as
per the data structure and standards specified by Principal Director General of Income-tax
(Systems) or Director General of Income-tax (Systems).

(2A) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax
(Systems) shall specify the procedures, formats and standards for ensuring secure capture and
transmission of data and shall also be responsible for evolving and implementing appropriate
security, archival and retrieval policies in relation to furnishing the returns in Form No. 1, Form
No. 2 and Form No. 2A.”;

(iii) after sub-rule (3), the following sub-rule shall be inserted, namely:—

“(3A) In case of an insurance company, the return referred to in sub-rule (1) shall be furnished by
the managing director or a whole-time director, as defined in clauses (54) and (94) of section 2 of
the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors of such company
in this behalf.”.

5. In the principal rules, in rule 8, after clause (b) the following clause shall be inserted, namely:—

“(c) in the case of an insurance company by the managing director or a whole-time director as defined in
clauses (54) and (94) of section 2 of the Companies Act, 2013 (18 of 2013) a duly authorised by the Board
of Directors of such company in this behalf.”.

6. In the principal rules, in the APPENDIX, after Form No. 2, the following Form shall be inserted,
namely: —

“FORM NO. 2A
[See rule 7 of Securities Transaction Tax Rules, 2004]
Return of Taxable Securities Transactions for Insurance Company

S.No ddmm yyyy
1. Name of the Insurance Company:

2. Date of Registration/Incorporation under the
Companies Act, 2013
6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]

3. Permanent Account Number (PAN)

4. Financial Year for which transaction is being reported

5. Jurisdictional Assessing Officer

6. Number of equity oriented funds

7. Value of taxable securities transactions

8. Total securities transaction tax collectible
9. Total securities transaction tax collected

10. Total securities transaction tax paid
11. Securities transaction tax payable/refundable

12. Interest payable under section 104

13. Interest paid

14. Details of Equity Oriented Funds with respect to Unit Linked Insurance Policies issued by the
Insurance company on or after the first day of February, 2021

S.No Name Unique Folio Name of PAN of Value of Securities Securities
of Client number person person taxable transaction transaction
equity Code of person from from securities tax tax
oriented of the from whom whom transaction Collectible collected
fund fund whom units units (in Rs.) (in Rs.) (in Rs.)
units purchased purchased
purchased

1 2 3 4 5 6 7 8 9

15. Month wise details of taxable securities transaction tax for the FY mentioned in column 4

S.No Month Name Unique Value of Securities Securities Securities Interest Interest
of Client taxable transaction transaction transaction payable paid
equity Code securities tax tax tax Paid under under
oriented of the transaction Collectible collected (in Rs.) section section
fund fund (in Rs.) (in Rs.) (in Rs.) 104 104

1 2 3 4 5 6 7 8 9 10

Total

16. Details of securities transaction tax/interest paid

Tax/Interest (In Name of the BSR code of Date of deposit Serial No. of Amount (In
Rs.)
Rs.) bank branch the bank branch Challan

11 12 13 14 15 16
[भाग II—खण्ड 3(i)] भारत का रािपत्र : ऄसाधारण 7

VERIFICATION

I, ........... (full name in block letters), son/ daughter of ............ solemnly declare that to the best of my
knowledge and belief the information given in this return is correct and complete and that the total value of
taxable securities transactions and other particulars shown therein are truly stated and are in accordance
with provisions of Chapter VII of the Finance (No.2) Act, 2004 and the Securities Transaction Tax Rules,
2004.

I further declare that I am making this return in my capacity as ......... and I am also competent to make this
return and verify it.

Date: .........

Place .........

(Name and Signature)

NOTES:-

1. This Form must be used by a Insurance Company Only

2. Details required in Row 14 may be given separately for each equity oriented fund set up by the
insurance company and sub-total of each fund be also given.

3. Details required in Row No. 15 may be given separately for each month for each equity oriented
fund set up by insurance company and sub-total for each month be also given.”.

[Notification No. 9/2022/F. No. 370142/61/2021-TPL]

NEHA SAHAY, Under Secy.

Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-
section (ii) vide notification number S.O. 1059(E), dated the 28th September, 2004.

Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.