HonestTaxpayer (Software Engineer) (103 Points)
23 July 2009Hi,
I had a query.
Since this is my first post to this forum, im very excited and looking forward to guidance from the qualified people here.
So I understand that commissions and STT end up getting deducted from STCG. Now my question is, for the past three years I have failed to mention the commisions and STT I have paid on my share transactions. But now I would like to benefit from those, is it possible now? If yes, how?
Thanks and regards!
CA Shailesh +91 9393926464
(Chartered Accountant)
(2088 Points)
Replied 23 July 2009
Income Tax is payable on the income u earned in the previous year (Financial Year). Any expenses incurred in connection with the income earned is allowed as deduction. But, it should be related to the same previous year.
Iam afraid u cant claim it
HonestTaxpayer
(Software Engineer)
(103 Points)
Replied 23 July 2009
:( Too bad!
Anyway, thank a tonne ... im impressed it was a very prompt reponse. :)
Niral Gangar
(Management Consulting Investment Advisory CA Practice)
(100 Points)
Replied 24 July 2009
I dont think STT can be deducted from Capital Gains. if you are in the business of Share trading then u can claim it as an expenditure
HonestTaxpayer
(Software Engineer)
(103 Points)
Replied 24 July 2009
Hey thanks for your response but what do you exactly mean by "can claim it as an expenditure"
CA CS Amit Borade
(Chief Accountant)
(2828 Points)
Replied 24 July 2009
Hi
No deduction shall allowed in respect of STT, in respect of transfer of equity shares & units of Equity oriented fund, paid by the assess while computing taxable capital gains -proviso to Section - 48
Niral Gangar
(Management Consulting Investment Advisory CA Practice)
(100 Points)
Replied 24 July 2009
If an assessee treats share trading as its Business Income such as in the case of Speculative share transaction then the assessee can claim i.e. deduct from its total profit on share transaction the expenditure incurred on STT.
HonestTaxpayer
(Software Engineer)
(103 Points)
Replied 25 July 2009
Hmmm so what happens in my case where I have a regular income from my job ,,, and im dabbling in shares?
To put things in perspective say i have a STCL of Rs 12000 ,,, and spend Rs 3000 on STT thruouy the year on STT/commissions ... can i offset me STCG for Rs 12000 + 3000 = Rs 15000 next year?
Im sorry im having yo ask his multiple times but I wnt to make sure I understand it
HonestTaxpayer
(Software Engineer)
(103 Points)
Replied 25 July 2009
Hmmm so what happens in my case where I have a regular income from my job ,,, and im dabbling in shares?
To put things in perspective say i have a STCL of Rs 12000 ,,, and spend Rs 3000 on STT thruouy the year on STT/commissions ... can i offset me STCG for Rs 12000 + 3000 = Rs 15000 next year?
Im sorry im having yo ask his multiple times but I wnt to make sure I understand it
Niral Gangar
(Management Consulting Investment Advisory CA Practice)
(100 Points)
Replied 25 July 2009
if there is Short term capital Loss you cannot set off STT against it. You can only Claim STT as expenditure if you have shown share trading as your business. in case where a person has regular income from salary he cannot be showing trading in shares as his business income hence STT cannot be claimed. so to answer your query he can only claim loss of RS. 12000/-
HonestTaxpayer
(Software Engineer)
(103 Points)
Replied 26 July 2009
Hey thanks everyone for your answers .. it has helped me a lot ! :)
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