LTCG on which STT is paid

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Krishna Murthy (Querist)
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09 November 2009 To claim exemption u/s 10(38), LTCG should be subjected to STT and transfer should be made in recognised Stock Exchange. what are the documentary proof should be available in order to claim the above. How to prove that the transfer took place in Rec. Stock exchange and STT is paid.

Juzer Sadikot

Juzer Sadikot (Expert)
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09 November 2009 Dear Mr. Krishna Murthy,

One can deal (purchase/sale) in share in Recognised Stock exchange (BSE/NSE) through Register Member/Broker/sub-broker of respective stock exchange.

As per Chapter VII of the Finance (No. 2) Act, 2004, STT is to be charged on purchase sale of equity Share which are traded at Stock Exchange at prescribed rates.

You may obtain contract note from the broker in which it is specifically mentioned that transaction has attracted STT and it also mention the exchange with in which transaction is done. It can be hold as valid proof for STT payment/transfer took place in Rec.Stock Exchange.

Apart from contract note, you may ask for trade confirmation slip if you have ur own reservation.

Regards
Juzer