Confusion regarding securities transaction tax (STT) on speculation loss simplified !

Securities Transaction Tax is now allowable as business expenditure from Assessment Year 2009-10. However, up to Asst year 2008-09 , the rebate is allowable for STT and there is great confusion regarding allowance of rebate u/s 88E of the I T Act in case a person who has transacted in shares - delivery based trades, non-delivery based share trade (speculative transactions ), futures & Option trades and other share trades. Many readers have reported that Assessing Officers are considering

What foreign exchange transactions are illegal in India?

What foreign exchange transactions are illegal in India?
Reserve Bank of India prohibits use of foreign exchange for certain purposes by Indians despite the fact that huge foreign exchange accumulation in Indian coffers , the RBI  had announced a Liberalised Remittance Scheme (the Scheme) in February 2004 as a step towards further simplification and liberalization of the foreign exchange facilities available to resident individuals. However , following transactions are illegal as RBI does not permit such foreign exchange transactions Remittance for any purpose specifically prohibited under Schedule-I

Capital gains tax rate simplified !

Capital gains tax rate simplified !
First of all , see whether the asset sold is long term asset  or short term asset . Follow the rule given below : Shares or units of mututal fund held for more than 12 months are long term. If held for less than 12 months, the shares or mututal fund units are short term asset. In case of all other kinds of asset, one is having long term assets if it is held for more than 36 months.

Whether purchase and sale of share through demat account is STCG or Speculation?

Income Tax Act distinguishes between different types of transaction in shares . The purchase or sale of shares can result in -short term capital gains or trading gains or speculative gains - all depending upon the circumstances in which such purchase or sale of shares have been done. In this context , Om Prakash Singh of Varanasi asks : "Whether purchase and sale of share through demat account is STCG or Speculation and whether interest paid on loan for

Why you need not fill Form 10DB for share transaction?

Form 10 DB was a declaration as proof of securities transaction payments on the purchase or sale of shares and units. Filing of form 10DB was a must for claiming deduction u/s 88E . From Asst year 2009-10 (FY 2008-09 ) provision of deduction on account of securities tax transaction has been abolished  by instertion of a clause in that section . Please read the section below 88E. (1) Where the total income of an assessee in a previous