What is Commodities Transaction Tax?

What is Commodities Transaction Tax?

It is the tax on exchange of non-agricultural commodities like gold, silver, copper, natural gases and crude oil on the securities market.

This tax is payable by both the seller and the buyer.
A list of taxable commodities and the rate at which they will be taxed can be found here:
https://www.incometaxindia.gov.in/pages/acts/commodities-transaction-tax.aspx

Quick tip:

The share price of these commodities on the market might include Commodities Transaction Tax since this tax is collected by a stock exchange from the seller.

Points to remember:

Here are some key takeaways from this section that you should remember.

Securities Transaction Tax is a direct tax charged on the purchase and sale of securities like stocks, bonds, shares, etc.
Commodities Transaction Tax is the tax on exchange of non-agricultural commodities like gold, silver, copper, natural gases and crude oil on the securities market.

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