Is STT paid on sale of shares allowed as a deduction?

It depends. If share profits are taxed as capital gains, STT is generally not deductible (Section 48 of the Income-tax Act, 1961 / Section 72 of the Income-tax Act, 2025). If the transactions are business and income is taxed as business income, STT may be deductible under Section 36(1)(xv) of the Income-tax Act, 1961 (corresponding business deductions under Section 29 of the Income-tax Act, 2025) when statutory conditions are met.

Can I add STT to the cost of acquisition for capital gains?

Generally no for the STT amount disallowed under the capital-gains computation rules. Confirm the year’s law and your facts with a CA before filing.

Does PJRJ help if the department disputes trader status?

Yes. The income-tax desk prepares factual submissions and representation packs when scrutiny questions STT or the investor/trader characterisation.

Share broker contract notes or annual STT summaries via WhatsApp +91-8882913461 or the contact form.

STT Deduction on Sale of Shares | Section 48 vs 36(1)(xv)

STT Deduction on Sale of Shares

When Securities Transaction Tax on share sales is deductible — Section 48 / Section 72 capital gains vs Section 36(1)(xv) / Section 29 business income — with PJRJ income-tax desk support.

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