Applicability of Security transaction Tax

STT is refundable for business investors through tax return. Is STT refundable for retail investors by tax return ? How to make entries in Tax return ? Can it be accounted in to acquisition cost ? If this cannot be claimed in any way, what are the requirements to claim it through Profits/Gains from Business and Profession ?

Any income from F&O is treated as business income. So, STT paid can be considered as an allowable expenditure.

Acquisition cost is generally used in the format while computing capital gains. In business income, its generally, Gross profit/loss - Allowable expenses = Net profit/loss.

@Quicko any other points to consider in this regard?

Hi @Shaji_Mathew

As correctly said by @Meher_Smaran, STT can be claimed as an expense for business income.

Intraday and FnO are considered business income and are taxed under the head “Income from Business & Profession”.
STT can be claimed in the ITR by showing it as an expense and hence reducing the net profit from the overall business income.

Hope this helps.

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