Where exactly should I use the phrase: "Shekaste nafsi nafarmaid"?
I came across this phrase and the conversation goes like this:
Person one-- You are smart!
Person two: You are smarter than me!
So, if I want to say the person is smarter than me, then I should use this phrase, right?
And one more thing, whether this phrase can be used anywhere if I want to say that the person who is complimenting me is more of what they said to me? For example, if I wanna say, you are more intelligent or wise, can I use this phrase there?
If you can provide some situation and example how and where exactly this phrase being used, that would be great for me to understand!
Merciii:)

Question

Where exactly should I use the phrase: "Shekaste nafsi nafarmaid"?
I came across this phrase and the conversation goes like this:
Person one-- You are smart!
Person two: You are smarter than me!
So, if I want to say the person is smarter than me, then I should use this phrase, right?
And one more thing, whether this phrase can be used anywhere if I want to say that the person who is complimenting me is more of what they said to me? For example, if I wanna say, you are more intelligent or wise, can I use this phrase there? 
If you can provide some situation and example how and where exactly this phrase being used, that would be great for me to understand!
Merciii:)

Answer

Hi :)
Yes, it means you are so modest! or stop being too modest!
In your example, the first person may finally say "shekaste nafsi nafarmaayid", which means just accept my compliment, or have more self-confidence!
Another example:
You say: I have been studying Persian for 3 years, but I still don't know much,
I say: Oh shekaste nafsi nakon! Your Persian is so good!
I hope it helps ;)

Answer

we have also a funny version of this expression too.
instead of saying " Shekaste nafsi nafarmaid (شکسته نفسی نفرمایید)" you can say "shekaste bandi mifarmaid" (شکسته بندی می فرمایید) - which is a more informal and friendlier version of saying you don't need to be modest!  just be yourself!