Accountal of security transaction tax

P Sreenivasulu (CA Job) (89 Points)

29 September 2007  

 

We invested in UTI balanced fund and sold the units after 5 years. While sending the proceeds UTI has deducted Security transaction tax.Now the question is whether security transaction tax needs to be separately accounted or only net proceeds only to be considered for arriving the profit for accountal purpose.

Say for example the cost of units   100

now sold at    120

STT deducted  0.30

net proceeds received 119.70

whether my profit on sale of investments is Rs.19.70 (by considering net proceeds)

or 20 (Gross) but to show 0.30 as other taxes paid. Can any body suggest ?

Sreenivasulu.P