Brokerage ,STT and other charges_Capital gains

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Quick Summary

When calculating capital gains tax on shares, you can reduce your sale consideration by expenses like brokerage, commission, and stamp duty. However, Securities Transaction Tax (STT) and demat account AMC are not deductible. Expenses incurred during the purchase of shares, such as brokerage and stamp duty, can be added to the original cost of acquisition, effectively lowering your taxable capital gain.

Dipen

Dipen (Querist)

02 September 2025 Hi,

While computing capital gains on sale of shares which expenses can be reduced from sale consideration of shares?

Also same charges paid while purchase of shares can also be added to cost of acquisition?

Pls advice

Regards,

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 September 2025 Brokerage, commission, and service charges paid at the time of sale can reduce the sale consideration.
Stamp duty and similar transaction costs at the time of sale are also deductible.
Exchange levy is allowed as a deductible, but Securities Transaction Tax (STT) and annual maintenance charge (AMC) for demat accounts are not allowed as deductions.
Purchase-related expenses (brokerage, stamp duty, registration fee, transfer charges) incurred while acquiring shares can be added to the original cost of shares, enhancing the cost of acquisition for capital gains computation.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

20 September 2025 Good Luck..

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