SECURITIES TRANSACTION TAX

While calculating taxable capital gains, STT is not allowed as a deduction from the sale consideration. Only expenditure on transfer such as brokerage, fees etc. are deductible from sale consideration to arrive at net consideration.

However in case the shares are sold as part of business activity, a deduction can be claimed under sec 36(1)(xiv) while calculating income under the head Business or Profession.

agree vth siddarth

Originally posted by : Siddarth R Sunder Ram
	While calculating taxable capital gains, STT is not allowed as a deduction from the sale consideration. Only expenditure on transfer such as brokerage, fees etc. are deductible from sale consideration to arrive at net consideration.   However in case the shares are sold as part of business activity, a deduction can be claimed under sec 36(1)(xiv) while calculating income under the head Business or Profession.

 I agree with Siddarth

Thank u frnds