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Shares and STT

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Sanjeev

Tax Payer

117 Points Posted on 29 March 2022

Hi,

I purchased some shares in 2010, and I paid STT in purchase transactions.

Then I sold these stocks in 2021 and I paid STT in sale transactions.

How is this STT accounted for in the LTCG / LTCL calculations ?

Replies (2)

Quick Summary

This discussion clarifies how Securities Transaction Tax (STT) paid on share purchases and sales affects Long Term Capital Gains (LTCG) and Losses calculations. It questions whether STT can be added to the purchase price or deducted from the sale price, similar to other transaction costs like brokerage or stamp duty. The core issue is understanding if STT is a deductible expense against capital gains or if it must be accounted for separately.

CA. Roopali Kadam

Jobs on assignment basis.

967 Points Posted on 30 March 2022

Account it in a separate STT exps head as these exps are not allowed as deduction in LT CG calculations

Sanjeev

Tax Payer

117 Points Posted on 31 March 2022

Thanks Roopali.

Do you mean that the STT deduction cannot be used to increase the purchase price unlike the brokerage, GST, Stamp Duty, Exchange Levy, SEBI turnover fees ?

Similarly, the STT expense cannot be used to reduce the selling price unlike brokerage, GST, Stamp Duty, Exchange Levy, SEBI turnover fees ?

Are both of the above statements correct or only one ?

STT cannot be accounted in the sale price as well as purchase price to reach LTCG/ loss ?

Please suggest.