Stt
This query is : Resolved
devendharreddy
(Querist)
09 June 2015
can i claim stt paid on purchase of shares as cost of acquisition and stt on sale of shares as expenses on transfer of asset
JUGAL PATEL
(Expert)
09 June 2015
The Security Transaction Tax (STT) levied on the sale of shares and units of equity oriented mutual fund
shall not be allowed as deduction in computing the income chargeable under the head “Capital Gains”. In
other words, the STT paid shall neither form a part of the cost in case of purchase nor be allowed as
deduction as expense of transfer in case of sale of such equity shares and units [Fifth Proviso to Section
48]
But if Sale of share is considered under Business Income then STT will be allowed as deduction
shall not be allowed as deduction in computing the income chargeable under the head “Capital Gains”. In
other words, the STT paid shall neither form a part of the cost in case of purchase nor be allowed as
deduction as expense of transfer in case of sale of such equity shares and units [Fifth Proviso to Section
48]
But if Sale of share is considered under Business Income then STT will be allowed as deduction
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09 June 2015
stt not allowed as deduction as cost of acqusition
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