Income from stock lending is taxable

Ritesh.D.jain (CA Job) (232 Points)

27 February 2008  
Income generated from the business of stock-lending and sale-repurchase of shares by a borrower will be taxable. However, the Central Board of Direct Taxes (CBDT) has exempted stock lending/borrowing from the purview of securities transaction tax (STT) and capital gains tax. CBDT has issued a circular in this regard to the income tax field formations.