STT when Business Loss on share Trading

No, not possible , stt never be claimed as business expenditure.

In my opinion , it should be claimed irrespective of Loss or Profit. as per section 36

No it can not be claimed as expenditure.

Under Section 36(1)(xv)and 36(1)(xvi) any secutities transaction tax or the Commodities Transaction Tax paid by the assessee shall be allowed as a deduction if the income from such transactions are shown as business income.In my opinion in case of a loss as there is no such income the deduction cannot be claimed.However if there loss from business but some income from transactions of securitiesor commodities then deduction can be claimed

Before A.Y. 2009-10.

I there is loss then deduction will not available nor 88E rebate.

On or After A.Y. 2009-10

U will get deduction.

as per ammendments for a.y. 09-10 stt will be allowed as deduction under sec 36.

From Asstt Year 2009-10, STT is deductible as business expenditure u/s. 36(1)(xv) and no rebate is allowed u/s.80E. There is no matter whether there is a loss or profit. If there is a loss, it is allowed to be carried forward u/s.71.

Form the Asst year 2009-10 it will be available as a deduction under chapter IVD. Any expenditure related to business can be claimed Hence the STT paid will also be a deductible expenditure.