securities transaction tax

A assessee suffers Securities transaction tax (STT) regarding transaction is cash market as well as futures trading.He treates cash maret transaction as capital gain and futures as business income. so while paying tax on future trading he can adjust the STT paid for the tax payable and balance he will pay. My question is whether he can take credit of STT paid on cash market transactions while paying tax on futures trading

Example:1) STT paid in capital market ie cash market Rs.15000/-

              2) STT paid in derivatives market ie futures trading Rs.10000/-

              3)Income tax on futures trading Rs.50000/-

 So, what is the tax payable ?

Replies (1)
No difference between STT and on Futures and cash markets. The main differnce is to be made from the point whether your holding for business or Investment. If ur holding for business/trading purpose then you can claim STT under Sec 88E of the IT Act

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