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,...Continue reading →
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...Continue reading →
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. If held for less than 36 months , the asset is calssified as short term capital asset
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.Continue reading →
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 !Continue reading →