Treatment of Bank / Demat Charges

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

KPMG-Senior Consultant-International Tax

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


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.

Senior Audit Assisstant

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





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