Accounting & Taxation Issues relating to Capital Market Transactions

(ii)
Rates of STT
‣ STT will be levied on Sale of a derivative (payable by seller)
where the transaction of such sale is entered into in a recognized
stock exchange at the following rate :
1-10-2004 to 31-5-2005 0.01%
1-06-2005 to 31-5-2006 0.0133%
1-0602006 to 31-5-2008 0.017%
w.e.f. 1.6.2008 rates of STT are as under :
(a) Sale of an option in securities 0.017% payable by seller
(b) Sale of an option in securities 0.125% payable by purchaser
Where option is exercised
(c ) Sale of a future in securities 0.017% payable by seller
(iii)
STT paid is an allowable expenditure from Asstt. Year 2009-10 due to
deletion of Sec. 40(a) (ib) w.e.f. 1.4.2009.
(F) CARRY FORWARD & SET OFF OF LOSSES U/s
70, 71, 72.
Section 70
Set off of loss from one source against income from
another source under the same head of income
70. (1) Where the net result for any assessment year in respect of any source falling
under any head of income, other than Capital gains, is a loss. Such loss can be set
off against his income from any other source under the same head.
(2) Where the result of the computation made for any assessment year under
sections 48 to 55 in respect of any short-term capital asset is a loss, the assessee
shall be entitled to have the amount of such loss set off against the income, if any,
as arrived at under a similar computation made for the assessment year in respect of
any other capital asset.
(3) Where the result of the computation made for any assessment year under
sections 48 to 55 in respect of any capital asset (other than a short term capital
asset) is a loss, the assessee shall be entitled to have the amount of such loss set off
against the income, if any, as arrived at under a similar computation made for the