I am an occasional share market investor. the broker had issued me a consolidated statement for the FY2016-17.
This statement says Equity STT paid of Rs.2270 under STCG, So could you please advise, if we need to declare this value in ITR-1 or somewhere while filing the IT returns for AY2017-18.
Thanks and Regards
It depends on two cases of how you show this buying and selling of stocks activity.
- If you show this as an investment, then such STT will not be considered as an expense and can’t be considered for taxation purpose.
- If you show this as business or profession income, then you can show STT as business expenses.
Hence, first decide which one you want to show. Also, you must be ready to defend the decision if IT Dept questions like whether you are the trader or investor. Because there is no such definition to differentiate.