Deduction of Security Transaction Tax from Nutual fund Fund


This query is : Resolved 

Quick Summary
This discussion clarifies whether Security Transaction Tax (STT) can be deducted from mutual fund profits. It's confirmed that STT is not eligible for deduction from equity-oriented funds under sections 111A & 112A of the IT Act. However, for debt category mutual funds, STT can be deducted from the profit amount.

(Querist)
12 July 2023 whether security transaction tax deducted from Mutual fund profit while calculating Mutual fund profit short term or long term.

12 July 2023 No. not eligible u/s. 111A & 112A IT act.

Daya (Querist)
12 July 2023 Sir,
Can I Deduct STT from Mutual fund profit amount.

12 July 2023 Not in case of equity oriented funds.
Yes, for debt category.


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