capital gain

Hi,

That no deduction shall be allowed in computing the income chargeable under the head Capital gains in respect of any sum paid on account of securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004.].

hello

as per amendment now stt is allowable expense while computing income in p/g/b/p

as for as capital gain is concerned then it will not add in purchases nd not deducted in sales....so no allowance

Hi Yash

In ur anwer what is the effect ? going to deducte  or not?

what r u asking about .... i can't understand ur question ..... could u plz explain it again?

What u said in your answer?

i think u got confused in capital gain answer......

actually there is a provision that  if u r buying equity then stt will not add in purchase amount

suppose u buy a share 4 rs 100 nd stt is .30 paisa then u will show ur purchase price rs 100 nd not 100.30

now if u sell the same it will not deuct 4m selling price .... suppose u sell at 149.50 , stt is .50 ..... now ur selling price will b 150...

got it

STT is not allowed while computing CAPITAL GAIN while

If an assessess is engaged in the BUSINESS of trading into shares, then STT would allowed as an expenses in his P&L A/c.

yes... STT is not allowed as a deduction in computing income form capital gains but there are some provisions u/s

10(38)  it says if equity shares(securities) are traded in a stock exchange recoginsed in india and the share qualify for long term then the capital gain computed is exempt. Even if there is a loss the assessee cannot claim the same.

111A   it says if equity shares(securities)  are traded in a stock exchange recoginsed in india and the share qualify for short term then the capital gain computed is taxable at a rate of 15%.

and the STT is allowed as business deduction u/s 36....

no, deduction for STT is not allowed