Cost of Acquisition (COA) for Shares

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When calculating capital gains tax on shares and mutual funds, understanding the Cost of Acquisition (COA) is crucial. Generally, all expenses incurred during the purchase, including GST, are added to the COA. The only cost typically excluded is the Securities Transaction Tax (STT) paid when selling or transferring assets.

Vaish T

Vaish T (Querist)
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21 August 2020 While computing Capital gains on shares and mutual funds, we need to identify Cost of Acquisition (COA). Apart from STT what is excluded to arrive at Cost of Acquisition for Shares and Mutual funds? Is GST paid while purchasing shares added to COA or it is excluded?

Vaish T

Vaish T (Querist)
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24 August 2020 Any answer from Experts on this query?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 September 2021 All the expenses, including GST (if at all paid) is included in investment of equity shares & units of MFs.
Only the STT paid during sell/transfer/redemption is excluded.

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