Hi friends,
i want 2 ask whether STT is deductible as transfer expense in case of Capital Gains of shares & mutual funds.
and is it correct 2 show the sale value less of STT.
Thanks
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SECURITIES TRANSACTION TAX
Replies (4)
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 | ||
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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. |
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I agree with Siddarth
Thank u frnds
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