Rebate u/ 88E

Tax queries 1015 views 3 replies

Rushabh

24 Points Joined August 2008

Dear all,

I have a query regarding section 88E - Rebate of STT:

I have a Profit from Futures & options and loss from day trading activities. Loss being in the nature of speculation loss wont be allowed to be setoff against the F&O profit.
HOwever, Do I get the benefit of STT paid on those speculative transactions while claiming rebate u/s 88E?
The doubt arises because of the wordings of S. 88E which specifies that the asessee shall be entitled to rebate on the income which is chargeable under the head Business & Profession. Since, Income includes negative profit too, whether the assessee can claim rebate on speculation loss ??

PLease do post reasons for your replies

Replies (3)

AMIT PAREKH

Chartered accountant holding COP

183 Points Joined May 2008

Yes , he will get a rebate . This is because the section while specifying the amount of deduction says " amount equal to sec. transacion tax paid on taxable securities transaction during the year."

It does not say only that STT which is paid in respect of taxable positive income.