Please answer this

securities transaction tax is disallowed u/s 40a. and also income tax, wealth tax, FBT and STT are disallowed as deductions from return of income. But there is no disallowance relating to excise duty, custioms duty, service tax.......... (all these are indirect taxes, so obviously there will not be any disallowance)

Also plz check section 88E.. Rebate in respect of securities transaction tax. 88E. (1) Where the total income of an assessee in a previous year includes any income, chargeable under the head Profits and gains of business or profession, arising from taxable securities transactions, he shall be entitled to a deduction, from the amount of income-tax on such income arising from such transactions, computed in the manner provided in sub-section (2), of an amount equal to the securities transaction tax paid by him in respect of the taxable securities transactions entered into in the course of his business during that previous year: Provided that no deduction under this sub-section shall be allowed unless the assessee furnishes along with the return of income, evidence of payment of securities transaction tax in the prescribed form59: Provided further that the amount of deduction under this sub-section shall not exceed the amount of income-tax on such income computed in the manner provided in sub-section (2). (2) For the purposes of sub-section (1), the amount of income-tax on the income arising from the taxable securities transactions, referred to in that sub-section, shall be equal to the amount calculated by applying the average rate of income-tax on such income. Explanation.For the purposes of this section, the expressions, taxable securities transaction and securities transaction tax shall have the same meanings respectively assigned to them under Chapter VII of the Finance (No. 2) Act, 2004.]

Hi, The only provision for deduction of Securities transaction tax is U/s 88E. If you have an taxable income arising from securities transaction chargeable under head "profits and gains of business or profession" and you have a proof of stt paid, which is clearly shown in the demat statement in form 10DB. the rebate is for the stt paid during the py during which the income of securities transaction is disclosed. the amount of rebate is = Income U/s 28 from securities transaction x tax liability before any rebate or surcharge or cess / total income.