A INVESTMENT COMPANY HAVING MUTUAL FUNDS UNITS IN ITS STOCK ON WHICH STT OF RS.80000 HAVE BEEN PAID ARE SOLD FOR A PROFIT OF Rs..80 LACS. HOW IT WILL BE SHOWN IN THE PROFIT AND LOSS ACCOUNT.
Rachit
(Analyst)
(913 Points)
Replied 07 May 2010
In my view The gain will be shown as Normal Business Profit and taxed accordingly
It is only in the case of LTCG where share are held as investments & not stock-in-trade does the gain is not taxable when routed through stock exchange and STT is paid
Amir
(Learner)
(4016 Points)
Replied 07 May 2010
Dear Lalit,
Agree with Rachit Bro........
Just want to add that STT will be allowed as deduction u/s 36
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