https://www.businesstoday.in/moneyt...-as-tax-paid-or-as-an-expense/story/7613.html
My understanding of this is...
View attachment 32925
This is Zerodhas.
Although I sold 2.31 higher, I still only broke even, because "Points to breakeven" is 2.31. Because total taxes and charges I have paid is 173.57, which includes a STT of 83
My understanding of the above link is that, this STT 83 which I have already paid as tax, will be credited back during my income tax calculation.
Using an example:
Assuming at year end I have a total income of Rs.Ten Lakhs as a derivatives trader, which attracts Income Tax of 30%, which comes to Rs.Three lakhs. While trading derivatives throughout the year, I have paid STT of Rs.85000 in total, for which the broker provides a certificate (or ledger).... this Rs.85000 gets deducted from Rs.Three lakhs, and I end up having to pay Rs.Two Lakhs Fifteen thousand only as Income Tax.