STT deduction u/s 88E

[Anup Kumar Grover]

A Pvt.Ltd.Co.earns speculative loss, non speculative business income and capital gain.STT deducted on all speculative loss, non speculative business income and capital gain.The query is whether STT deducted on speculative loss earned is qualified for dedcution for calculation of rebate u/s 88E in respect of calculation of tax liability on non speculative business income. Non speculative business income is also arised from sale/purchase of shares subject to STT.

AI Summary

Can a company claim STT rebate under Section 88E for speculative losses in a mixed business? A private limited company inquired about the eligibility of claiming a Securities Transaction Tax (STT) rebate under Section 88E for speculative losses when calculating tax liability on non-speculative business income. The reply indicated that if speculative and non-speculative activities are part of the same business with common management and financial accounts, the STT paid on all transactions could be considered together using a 'global method' to calculate the rebate. However, there may be disputes with revenue authorities, who might argue that rebates should only apply to profitable transactions, potentially leading to litigation. Another participant queried about the applicability of STT rebates for short-term capital gains.