Rebate u/ 88E

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)

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.

i want to know about determining about tax liabilites.

NET PROFIT AS PER P/L ACCOUNT                    10,00,000/-

LESS . ADJUSTEMENT   FOR NORMAL TAX          3,33,000/- including stt 1,50,000/-

NET PROFIT                                                                  6,67,000/-

our tax  at normal rate  2,00,000/-

u/s 115JB tax liabilites 1,00,000/-

s.t.t. paid 1,50,000/-

 

 

How to calculate average rate in security transaction tax?

Please, Explain with example.

 

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