Capital gain tax and securities transaction tax

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sidambaraselvan (Querist)
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05 July 2013 1. Who should pay securities transaction tax? Either the Stock broker or the income tax assessee who purchased or sold the shares.

2. What is the difference between Capital Gain Tax on shares and Securities Transaction Tax on share?

3. If Securities Transaction tax is deducted, then how capital gain tax should be calculated?

4. Securities Transaction Tax is paid. but there is no income tax as the income is below the ceiling limit including income from shares. Whether Securities transaction tax so paid can be claimed as refund.

kindly guide me

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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22 July 2013 1. STT is paid by trader n not broker
2. CG is tax levied under Income Tax Act which is difference between sale price n purchase price. It is applicable only if you have profit. but STT is levied on transaction, irrespective of fact that you are having profit or loss.
3. STT has no impact on CG
4. If you have income tax liability, STT is deducted. But in case of nil tax, you can't claim refund.

Regards

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