Which statement about the deductibility of Securities Transaction Tax (STT) and Commodities Transaction Tax (CTT) is correct?

1. Section 36(1)(xv) allows STT paid as a deduction where the income from the taxable securities transactions is included under the head PGBP (for example, a share dealer). 2. Section 36(1)(xvi) gives the identical treatment to CTT on taxable commodities transactions whose income is business income. 3. Taxable commodities transactions exclude agricultural commodity derivatives, which also escape CTT itself. 4. Against CAPITAL GAINS, by contrast, STT is never deductible as cost or expense — option D inverts the actual rule, and options B and C each deny a deduction the statute expressly grants. _Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 3 PGBP, PDF p. 73_