TaxTMI 
TaxTMI 
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.
STT deduction u/s 88E
23 Sep 2008 
2 Replies 
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STT rebate entitlement: combined treatment of speculative and delivery trades can permit rebate on STT across all transactions.
Whether STT on loss making speculative trades qualifies for rebate under section 88E hinges on treating speculative and delivery based share trading as a single business; if they share common management and unified accounts, STT on all transactions can be aggregated and an average tax computed to allow rebate under a combined method, though revenue may dispute entitlement for STT on loss making transactions, risking litigation. (AI Summary)
Whether STT on loss making speculative trades qualifies for rebate under section 88E hinges on treating speculative and delivery based share trading as a single business; if they share common management and unified accounts, STT on all transactions can be aggregated and an average tax computed to allow rebate under a combined method, though revenue may dispute entitlement for STT on loss making transactions, risking litigation. (AI Summary)