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capital gain

CHAYA MAHESHWARI (Chartered Accountant) (42 Points)

19 June 2009

whether STT is allowed as an expense on transfer of any capital asset u/s 48?

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10 Replies

R.Suresh (Sr. Executive) (394 Points)
Replied 19 June 2009

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.].

Yashpreet (68 Points)
Replied 19 June 2009

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

R.Suresh (Sr. Executive) (394 Points)
Replied 19 June 2009

Hi Yash

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

Yashpreet (68 Points)
Replied 19 June 2009

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

R.Suresh (Sr. Executive) (394 Points)
Replied 19 June 2009

What u said in your answer?

Yashpreet (68 Points)
Replied 19 June 2009

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

Atul Kumar (CA) (504 Points)
Replied 19 June 2009

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.

Prem Kumar (Articled student--Final) (375 Points)
Replied 20 June 2009

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....