is stt treated as tax paid or an expense?

General
1

If I get profits of 50,00,000 (F&O only) after all the brokerage/STT/NSE transactions.

Do I pay taxes on: 50,00,000 - (Total STT paid)

or do I have to pay taxes on 50,00,000.

2

income Tax is chargeable on the Net Profit after deduction of all such expenses associated with such income.

The P&L statements you generate from your trading account’s back-office shows you the net P&L summary with all such deductions.

For accounting purposes, STT is treated as an expense associated with Trading.

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3

Can you reduce your taxes if you take arbitrage positions, rather than speculative trade.