STT Calculation

tradedatrend

Well-Known Member
#1
Hi Folks,

As we know STT is setoff / reduced in our income tax liability arise on the account of trading.

But how to calculate this STT?

Open each and every contract note, write down the amount paid as STT in that contract note??? Hell of task in this way.

Or there is someother way where we can check how much money we have paid as STT in a financial year without getting mad with the plethora of contract notes.

Please advise.



TIA
TradeDaTrend
 

Subhadip

Well-Known Member
#2
Hi Folks,

As we know STT is setoff / reduced in our income tax liability arise on the account of trading.

But how to calculate this STT?

Open each and every contract note, write down the amount paid as STT in that contract note??? Hell of task in this way.

Or there is someother way where we can check how much money we have paid as STT in a financial year without getting mad with the plethora of contract notes.

Please advise.



TIA
TradeDaTrend
Zerodha gives it free at each FInancial year in their back office.
 
#3
Hi Folks,

As we know STT is setoff / reduced in our income tax liability arise on the account of trading.

But how to calculate this STT?

Open each and every contract note, write down the amount paid as STT in that contract note??? Hell of task in this way.

Or there is someother way where we can check how much money we have paid as STT in a financial year without getting mad with the plethora of contract notes.

Please advise.



TIA
TradeDaTrend
STT amount paid was earlier given as credit in the Income Tax.But it is now given as allowable expense to be deducted while calculating net profit.But our contract notes already deduct brokerage,STT,exchange charges etc,so no need to calculate STT paid.If you deduct STT from net profits,it will amount to double deduction which is not allowed.

If you want o deduct STT then you have calculate net profit without deducting STT and then deduct it as allowable expense.This is a pointless excercise in my view and gives no benefit to the trader.

Smart_trade
 

Snake.Head

Well-Known Member
#5
STT amount paid was earlier given as credit in the Income Tax.But it is now given as allowable expense to be deducted while calculating net profit.But our contract notes already deduct brokerage,STT,exchange charges etc,so no need to calculate STT paid.If you deduct STT from net profits,it will amount to double deduction which is not allowed.

If you want o deduct STT then you have calculate net profit without deducting STT and then deduct it as allowable expense.This is a pointless excercise in my view and gives no benefit to the trader.

Smart_trade
This from was from zerodha varsity taxation

All charges when trading (STT, Brokerage, Exchange charges, and all other taxes). I hope you remember that STT can’t be shown as a cost when declaring income as capital gains, but it can be in case of business income.
But didn't mention about deducting from net profit or gross profit
 

tradedatrend

Well-Known Member
#6
STT amount paid was earlier given as credit in the Income Tax.But it is now given as allowable expense to be deducted while calculating net profit.But our contract notes already deduct brokerage,STT,exchange charges etc,so no need to calculate STT paid.If you deduct STT from net profits,it will amount to double deduction which is not allowed.

If you want o deduct STT then you have calculate net profit without deducting STT and then deduct it as allowable expense.This is a pointless excercise in my view and gives no benefit to the trader.

Smart_trade
Valid point.
 

pakatil

Well-Known Member
#8
STT is already deducted at Broker's level. Ask for STT deducted statement from Broker. That can be used to claim deduction in the Income Tax liability for the year. :)
 

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