if i pay security transaction tax then i am suppose to pay income tax?

Answer 1

When you have paid security transaction tax at the time of selling securities (shares), then,

If you are an investor and not trader:

1. If you are selling the shares after 12 months, then it comes under long term capital gains and you need not have to pay any tax on that gain.

2. If you are selling the shares before 12 months then you have to pay short term capital gains @10% flat on the gain.

If you are a trader and not an investor:

All your gains will be treated as trading (Business) and you have to pay tax as per tax sables. In this case the transaction tax paid by you can be claimed back/adjusted in tax to be paid.

Reddy.

Answer 2

You pay security transaction tax when you buy/sell securities through stock exchanges. This can be adjusted against tax payable on income arising out of these transactions.

Answer 3

An assesee can claim rebate for STT paid against income tax payable by him if he is carrying on the business of securities.If the assesse has morre than one source of income, the benefit of rebate will be available on proportionate basis of securities business income to total income.
It implies that if you purchase securities as investment to avail of the advantage of lower rates of capital gains tax, you cannot set off the STT paid against the income tax liabilities.

Answer 4

it dependns upon the security transaction tax amount and profit arise purchase and sale of u r shares
suppose u r S.T.Tax amount is Rs.100/-
Tax arise on sale of shares is low the then u r not pay any S.T.Tax. other wise u r pay.

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Answer 5

Yes you are required to pay I.Tax at applicable rates for all other income plus short term gains in securities if any.