Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Query in STT

Whizkid (student) (640 Points)

29 September 2010

Can anyone tel me whn ll STT be paid? If STT has been paid on shares, does it have any consequence on taxability on Cap gain? I want the prov explained for LTCG and STCG if STT paid and not paid...

Reply
Follow
Share

8 Replies

Priyanka sah (Students) (108 Points)
Replied 29 September 2010

STT is payable at the time of both purchase and sale of Share thorough stock exchange STT will not be added in purchase cost because it is not allowed. also STT will be deducted from sale consideration for calculation of Capital gain

If holding period is more that 12 month then capital gain wll be treated as long term. If STT is paid on long term share then capital gain arised due to sale of such share will be exempt u/s 10(38).

Whizkid (student) (640 Points)
Replied 29 September 2010

Thanks Priyanka... Bt wht abt consequences of STT on STCG: > iF STT paid? > If STT not paid? Any spl exemption lik LTCG?

Harpreet (* * * * * *) (1670 Points)
Replied 29 September 2010

I am agreed with Ms priyanka sah.

Priyanka sah (Students) (108 Points)
Replied 29 September 2010

If STT paid and gain is STCG special rate of section 111A id applicable (tax rate under Sec 111A is 15%)

2 Like

Santosh Mahato (CA student) (207 Points)
Replied 29 September 2010

Yaa Priyanka madam is 100% correct

vinod jain (Learner) (40 Points)
Replied 29 September 2010

STT i.e. securities transaction tax if paid on LTCG means that there is no tax liability on LTCG. This is pointed in exemptions under section 10

Rahul Sinha (Team Lead) (44 Points)
Replied 26 February 2011

I bought shares of a company in 2003 when STT was not in place. Thus I didn't pay STT at purchase. Shares are held in ICICI Direct's demat account. If I sell the shares now STT will be charged on sale. So the question is:

Will I be exempt on LTCG tax if I pay STT on sale but not on purchase?

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 26 February 2011

Originally posted by : Rahul Sinha
	I bought shares of a company in 2003 when STT was not in place. Thus I didn't pay STT at purchase. Shares are held in ICICI Direct's demat account. If I sell the shares now STT will be charged on sale. So the question is: Will I be exempt on LTCG tax if I pay STT on sale but not on purchase?