A storage capacitor is constituted by a storage capacitor electrode, made of a transparent and conductive film extending substantially all over a substrate, and pixel electrodes overlapping with the storage capacitor electrode via an interlevel insulation layer. The storage capacitor holds charges. The storage capacitor electrode is positioned such that it faces the entire surface of the pixel electrodes. Since the transparent and conductive storage capacitor electrode does not reduce the aperture ratio, the storage capacitor can have a large capacitance. A signal voltage applied to the storage capacitor electrode is determined so as not to activate the thin film transistors which are not selected. A light-shielding layer is present at a position between pixel electrodes on or under the storage capacitor electrode. The light-shielding layer shields the thin film transistors, gate lines and drain lines from incident light, thereby preventing reduction of contrast of displayed pictures. Further, an anti-reflection layer formed by heat treatment is placed on a boundary between the storage capacitor electrode and the light-shielding layer, and is effective in assuring visibility of the picture on the liquid crystal display.