how to calculate profit from Short term capital gain

This query is : Resolved

Mannu (Querist)
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07 July 2011 Hi ,
how to calculate short term capital gain when i brought a few shares and sold them within 12 months.
While calculating Income tax on the profit earned do i take the STT,Brokerage charges,Service Tax,delivery handling charges too .
Suppose I bought a share @ Rs 20
The broker during buy and sell deducted STT,brokerage,delivery,service tax amounting to Rs 5.
I sold the share at Rs 30
What is my total profit on this for calculation of Income tax :
1. 30-20-5= 5 (as Rs. 5 was with the broker and i didn't earn it) or
2. 30-20 =10 . Kindly clarify as my broker is also not helping me ...

U S Sharma

U S Sharma (Expert)
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08 July 2011 cost of acquisition = cost + brokerage + other expenses ( excluding STT)

Sale Value = Gross sales value - ( brokerage + all expenses {excluding STT})

Sale value - Cost of acquision = Short term capital gain ( to be taxed @ 15%)

STT is capital expenditure in case of capital gain claims.