02 August 2008
A person who derives income from share trading business and has paid STT on transactions executed on a recognised stock exchange is elegible for a rebate from the tax due on the total income u/s 88E ofthe Income Tax Act which is calculated at the average rate of tax on the income earned from dealing in such securities on which STT has been paid. Such a rebate is allowable upto AY 2008-09. Finance Act, 2008 has carried out amendments and the STT which was otherwise not allowed as a business expense has been made allowable as a business expense and section 88E has been dispensed with.
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