13 April 2008
Yes, it can be claimed as an expense like any other business expenditure u/s 36. and not as a rebate u/s 88E.
In one way it is not beneficial to an assessee, as he has lost his right to claim the entire amount of STT paid from his total tax liability.
HOWEVER, in case of losses it is benificial to the assessee...
Eg. His loss from business is Rs.10,000 before claiming STT u/s 36 which amounts to Rs.2,000/-...(Consider he is having no other income)
In pre-budget case, he had nil tax liability (because of loss). He would have c/f Rs.10,000/- in next year. There was no question of rebate u/s88E since tax in that year was nil... and the amount paid as STT cannot be used in any year.
However in post budget case, he would also claim Rs.2,000/- in addition to Rs.10,000/- as his business loss, so he can now carry forward Rs.12,000/- instead of Rs.10,000/- as his business loss.
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