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A tax levied at a purchase or sale of shares, bonds , debentures etc is known as
Dividend distribution tax
Corporate tax
Securities transaction tax
Minimum alternate tax
- Securities Transaction Tax (STT): A tax imposed on the buying and selling of shares, bonds, debentures, and other financial securities. It is a direct tax payable by both buyers and sellers in stock exchanges.
- Dividend Distribution Tax (DDT): Tax charged on the dividends distributed by a company to its shareholders. The company pays this tax before giving dividends to shareholders.
- Corporate Tax: A tax imposed on the profits of a corporation. It is levied on a company's taxable income.
- Minimum Alternate Tax (MAT): A tax aimed at bringing zero tax companies within the tax ambit. It ensures that a company pays a minimum amount of tax even if its taxable income is reduced to zero after claiming various exemptions.
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