Capital gain of shares

This query is : Resolved

CA.VIPIN CHAWLA (Querist)
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03 August 2011 Dear Experts,

Kindly confirm whether while calculating STCG on shares, STT , brokerage would be deducted or not.

Thanks.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 August 2011 STT will not be deducted from the sales consideration while sale and will not be added in cost while purchasing the shares.

Brokerage may be deducted and added.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 August 2011 STT is not allowed as deduction in computing Capital Gains.
Proviso to Sec 48 reads as under -
[Provided also that no deduction shall be allowed in computing the income chargeable under the head “Capital gains” in respect of any sum paid on account of securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004.]

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