Expenditure on STCG? URGENT PLEASEEEEEEEEEEe

Interest Paid on loan taken For investing in Equity shares not allowable as a deduction from STCG.

Benefit of  Basic exemption of 1.60 L is available on STCG on Equity

since there is no specific provision regarding this in capital gain then it should not be allowed as a deduction from  STCG.

exemption of RS 160000  can be availed if a security has be sold through recognized stock exchane (short term) u/s 111A(TAXABLE @ 15%). THE BENIFIT IS NOT ALLOWED WHEN SECURITIES LIKE  ZERO COUPON BONDS , DEBENTURES (NOT CAPITAL INDEXED) ETC WHICH ARE LONG TERM CAPITAL ASSET AND ON TRANSFER THE COST INFLATION INDEX OF THE COST OF PURCHASE AND IMPROVEMENT IS NOT TAKEN AND THEY ARE TAXABLE @ 10%.

When STCG treated as like as business income ,Automatically the costs incurred for getting that income also treated as like as allowble expendature.

BALU 

Lerner

exemption on STCG u/s 111A is 2,00,000.

Interest expense will not be allowable under STCG. But exemption limit will be allowable if there is no other income. For AY 2013-14 exemption limit is Rs. 200,000 which can be taken against STCG.