Query in STT

STT is payable at the time of both purchase and sale of Share thorough stock exchange STT will not be added in purchase cost because it is not allowed. also STT will be deducted from sale consideration for calculation of Capital gain

If holding period is more that 12 month then capital gain wll be treated as long term. If STT is paid on long term share then capital gain arised due to sale of such share will be exempt u/s 10(38).

I am agreed with Ms priyanka sah.

If STT paid and gain is STCG special rate of section 111A id applicable (tax rate under Sec 111A is 15%)

Yaa Priyanka madam is 100% correct

STT  i.e. securities transaction tax if paid on LTCG means that there is no tax liability on LTCG. This is pointed in exemptions under section 10

I bought shares of a company in 2003 when STT was not in place. Thus I didn't pay STT at purchase. Shares are held in ICICI Direct's demat account. If I sell the shares now STT will be charged on sale. So the question is:

Will I be exempt on LTCG tax if I pay STT on sale but not on purchase?

Originally posted by : Rahul Sinha
	I bought shares of a company in 2003 when STT was not in place. Thus I didn't pay STT at purchase. Shares are held in ICICI Direct's demat account. If I sell the shares now STT will be charged on sale. So the question is: Will I be exempt on LTCG tax if I pay STT on sale but not on purchase?

STT requirement is on sale only, if u sell shares through ICICIdirect, stt would be paid and u will get LTCG exempted u/s 10(38)