01 April 2008
sir/madam, I have confusion about new stt norms effect, As far as i know earlier it was available to be allowed as deduction u/s 88E where the average rate of tax was used to calculate the deuction.But from this year "budget 2008" it has been fully allowed as deduction so we can claim entire stt paid as deduction.
please tell me what is bad about it,as stock markets,traders particularly are disliking it?
01 April 2008
See it goes like this: Say your income is 600 ,exp. is 200 and u hv paid stt of 10 so your tax liability is as follows: Earlier: 600 -200 ______ 400*10%=40 Less:Stt -10 ______ Tax 30 As per Budget 2008: 600 -200 Less Stt- 10 _______ 390*10% So Tax =39 So the tax liability is enhanced from 30 to 39
one more ques. if instead of rs. 400 gain in fy 07-08 i had loss of rs.400 then how we give stt deduction,as its for sure that i would have paid stt both on buying and selling.
also how a person should decide to show himself as investor or trader(means business income)
CAclubindia
