STT norms bad or good effect.Please explain what it is?

Save Share

This query is : Resolved

Shrestha Jain (Querist)

01 April 2008 sir/madam,
I have confusion about new stt norms effect,
As far as i know earlier it was available to be allowed as deduction u/s 88E where the average rate of tax was used to calculate the deuction.But from this year "budget 2008" it has been fully allowed as deduction so we can claim entire stt paid as deduction.

please tell me what is bad about it,as stock markets,traders particularly are disliking it?

CA.Aman Dugar

CA.Aman Dugar (Expert)

01 April 2008 See it goes like this:
Say your income is 600 ,exp. is 200 and u hv paid stt of 10 so your tax liability is as follows:
Earlier: 600
-200
______
400*10%=40
Less:Stt -10
______
Tax 30
As per Budget 2008:
600
-200
Less Stt- 10
_______
390*10%
So Tax =39
So the tax liability is enhanced from 30 to 39

Shrestha Jain

Shrestha Jain (Querist)

02 April 2008 thankyou sir,

one more ques. if instead of rs. 400 gain in fy 07-08 i had loss of rs.400 then how we give stt deduction,as its for sure that i would have paid stt both on buying and selling.

also how a person should decide to show himself as investor or trader(means business income)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now