STT on Shares

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2009 Can some one provide me help on the following treatment of STT for an Individual :-

1.STT on Purchase of Shares(Delivery)
2.STT on Sale of Shares(Delivery)
3.STT on Intraday transaction

Note:- All are Short Term

Also tell me where and how to show the profit or loss on intra day transaction

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)

31 December 2009 Hiii....

Earlier(Till A.Y. 2009-10) u/s 88 was the related section for treatment of STT paid, now, w.e.f. A.Y. 2010-11, this section has been abolished.

Now, from A.Y. 2010-11, STT is eligible expenses under PGBP (u/s 36), only if Income from Sales of Shares is taxable under PGBP.

So, If your income is taxable under PGBP, then only you are eligible for deduction for STT, otherwise if your Gain on Sale of Shares is taxable under Capital Gain, then there is no any deduction available.

Now, for you Query:

1) If it is eligible deduction u/s 36 for PGBP purpose, therefore it should be added in the cost of shares, means should be form part of purchase cost.(My opinion)

2) STT is eligible as deduction(under PGBP). only if, Gain or Profit of sale of shares is taxable under PGBP.

3) Like above, STT paid on Intraday Transaction is eligible for deduction under PGBP, and this Income should be taxable as income from Speculation Business. Further:
(a) any loss from this business is not eligible for any set-off with profit from any Non-sepculation business.
(b) However, Any profit from Speculation business could be set-off for any loss from Non-speculation business.

Regards!!!
Dinesh S. Adhikari

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2009 thanks Dinesh.... but my query is not yet solved. The Shares belongs to an Individual.... The Contract Note comes in His name.. How can he Show the transactions under PGBP also he doesn,t have any running Business..