Section 36(1)(xvi) - Commodities Transaction Tax - Income Tax - Ready Reckoner - Income Tax

Section 36(1)(xvi) : Commodities Transaction Tax (CTT) Any amount of CTT paid by the assessee during the previous year on the taxable securities commodities transactions entered into by him in course of his business is allowed as deduction if the income arising from such commodities are included under the head PGBP. This is when commodities are held as Stock-in-Trade. These transactions must be entered into in the course of business. This deduction is for commodity brokers and dealers. Important Note There shall be charged a commodities transaction tax in respect of taxable commodities transaction specified, at the rate specified in the corresponding entry on the value of such transaction and such tax shall be payable by the purchaser or the seller, as the case may be. [ Section 117 of Finance Act, 2013 ]