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Treatment of Bank / Demat Charges

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Can Bank / Demat charges be claimed under the head " Loss from other sources "

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6 Replies

CA NITUL MEHTA (KPMG-Senior Consultant-International Tax ) (236 Points)
Replied 27 May 2011

bank charges are leived for work done by banks on behalf of thier client like issuing cheques cheque books drafts stading orders etc but not towards earning interest from such account so under section 57 only expenditure incurred exclusivley for earning the income is allowed. so here you can not claim the deduction

d mat charges are as it is for share traidng which has no link with earing interest in bank accounts so you can not claim it in income from other sources may be if you are delaing in shares and you are treated under income from business and proffesion by AO the may be you can claim demat charges and bank charges as expenditure u/s 37

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 27 May 2011

demat charges can be claimed as expense in short term capital gain ( proportionate only) , as the long term capital gain is tax free, so there is no scope of allowance.

regarding bank charges, this may be DD charges, Debit card fees, annual charge, which can not be claimed.

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pankaj (Senior Audit Assisstant) (28 Points)
Replied 07 June 2011

bank and dmat charges

if propertership or business income then claimed as business expenses

if there is no business or dmat account is not used for business related activities means dmat is for individual for personal then there is no any claim about dmat charges or bank charges from earned income it is a part of individual drawing

SHANU SHANKLESHA (ca) (58 Points)
Replied 11 June 2016

Hii all,

If Trade in equity market and i paid Demat charges for trading in equity share ( Purchase & Sell of Share). On account of trading, I end up making Short Term capital loss..So my doubt is whether I can take deduction of Demat charges under Short Term loss and increase my loss.. Please Help...

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 13 June 2016

Originally posted by : SHANU SHANKLESHA
	Hii all, If Trade in equity market and i paid Demat charges for trading in equity share ( Purchase & Sell of Share). On account of trading, I end up making Short Term capital loss..So my doubt is whether I can take deduction of Demat charges under Short Term loss and increase my loss.. Please Help...