NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Taxation of Equity Products
Which statement about Securities Transaction Tax (STT) is correct for a resident investor in the context of capital gains on equity?
STT paid is not allowed as a deduction while computing capital gains. It is neither an expense of transfer nor a rebate against tax, and it applies to both purchase and sale in delivery-based equity trades.
- ASTT paid is deductible from capital gains as an expense of transfer
- BSTT paid is not allowed as a deduction while computing capital gainsCorrect
- CSTT paid can be claimed as a rebate from tax payable
- DSTT is payable only by the seller on delivery-based purchases
Explanation
STT is not allowed as a deduction in computing capital gains or business income's cost of acquisition or transfer expenses for capital gains. It is also not a tax rebate. It applies on both buy and sell for delivery-based equity trades.
Did you get it right without looking?
One question tells you little. A timed set on Taxation of Equity Products shows your real accuracy, how long you take and where you lose marks.
More Taxation of Equity Products questions
- Under the Indian Income-tax law currently taught for NISM-Series-X-B, which of the following best describes the nature of tax on dividend re…
- Under the Income-tax Act as taught for NISM X-B, how is dividend received by a resident individual from a listed Indian company taxed?
- Meera, a resident individual, sold listed equity shares on a recognised stock exchange after paying STT. She held them for 8 months and made…
- Rohan, a resident individual, sold listed equity shares after 3 years, realising a long-term capital gain of Rs 2,25,000 in the year. He has…
- Under the Income-tax Act as applicable to listed equity shares, what is the minimum holding period after which a gain on sale of a listed eq…
- Which statement about dividend income received by a resident individual from an Indian company is correct under the current law?