Udaipur Chartered Accountant Pallavi Mehta shared her reaction to the Union Budget, stating that in the Central Budget 2026, the Securities Transaction Tax (STT) on Futures and Options (F&O) trading has been increased. According to the government, excessive and imbalanced trading activity in the F&O segment in recent years has resulted in significant losses for a large number of small investors.

She explained that the increase in STT is aimed at discouraging highly speculative trading and making investors more aware of the risks involved. The budget has raised STT rates on both options and futures, which will make high-frequency trading more expensive and curb excessive speculation.

On the other hand, to promote tax compliance, the government has announced a special six-month amnesty scheme for the disclosure of foreign assets and foreign income. Under this scheme, taxpayers will be able to declare their undisclosed foreign assets without facing severe penalties. The objective of this move is to broaden the tax base and encourage voluntary compliance.

Overall, CA Pallavi Mehta said the budget sends a clear message—on one hand, it seeks to control high-risk trading practices, and on the other, it promotes transparency and improved tax compliance.

Source: