New Delhi, Feb. 1 -- As the Union Finance Minister Nirmala Sitharaman on Sunday proposed a significant hike in Securities Transaction Tax (STT) on futures and options trades, the Income Tax Department issued a clarification on the hike in Securities Transaction Tax (STT) on futures and options trades and said, "Except futures and options (F&O), STT rates remain same for others."

It said the total volume of transaction in options and futures is more than 500 times of Indian Gross Domestic Product (GDP) and there was a justification to curb speculation.

"In Rupee terms, our GDP is 300 lakh crore rupees, while the volume for options and futures is more than 1.5 lakh lakh crore rupees. Therefore, there is justification for increase in rates...