Form 10 DB was a declaration as proof of securities transaction payments on the purchase or sale of shares and units. Now STT is allowed as business expense u/s 36(1) which is explained in posting titled Deduction of securties transaction tax (STT) from business or capital gains simplified !
The income from share transaction can occur in following forms 1. Share trading 2. Speculative trade 3. F & O transactions 4. Capital Gains Allowance of STT for First three types (1, 2 & 3) From Assessment Year Asst Year 2009-10 (FY 2008-09 ) , Securities Transaction Tax (STT) is defined as an expense u/s