Quote for the Day:

"It is true that every effort is not converted into success 
but it is equally true that success does not come without efforts"

Important Case Law:

• “Is charging tax on every trade, profit or loss, fair? The Supreme Court weighs in on Securities Transaction Tax’s true cost.”

Case Analysis:

Aseem Juneja v. Union of India (W.P.(C) No. 657/2025) - Supreme Court of India, Order Date: October 6, 2025

Facts of the Case:

•    📗 The petitioner, Aseem Juneja, filed a writ petition challenging the constitutional validity of Securities Transaction Tax (STT) imposed under the Finance Act, 2004.

•    📗 Juneja argues that STT is unconstitutional as it violates Articles 14, 19(1)(g), and 21 of the Indian Constitution, being arbitrary and punitive since it is levied on every transaction irrespective of profit or loss.

•    📗 The petitioner further seeks to have STT either declared void or alternatively, for the government to allow adjustment of STT paid during the year against capital gains tax (similar to how Tax Deducted at Source or TDS is adjusted for salaried professionals).

•    📗 The petitioner appeared in person at the Supreme Court hearing.
 

Issue:

•    Is the levy of Securities Transaction Tax without regard to actual profit or loss unconstitutional and unfair?

•    Should STT paid be allowed to be adjusted against capital gains tax liability?

Court Proceedings & Order:

•    The Supreme Court granted permission for the petitioner to argue the case in person.

•    The Court issued notice to the Union of India and set the matter for further hearing, with a response from the government returnable in four weeks.

•    The Court took note of the petitioner’s argument that STT is unique as a professional tax on stock transactions based solely on volume/activity without profit consideration, making it effectively punitive.

What was held:

•    No final verdict has been delivered yet.

•    The Supreme Court is presently considering the constitutional and legal validity of STT in light of the arguments on proportionality, equality, and fairness.

Conclusion:

This case marks a significant legal challenge to the Securities Transaction Tax regime in India, spotlighting issues of fairness in tax treatment for stock traders. The Court’s ruling will have important implications for investors, regulators, and the tax structure applicable to securities transactions.

For Judgment,  Please click here

Useful Updates:

( Contribution by CA. Satish Agarwal )

• 										  155 Legal Compliances and Legal Updates for Nov-2025 in India  Read More         
  										

( Contribution by CA. Navjot Singh )

• Prompt Engineering for Tax Professionals: The Art of Getting Smarter Answers from AI  Read More

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