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expenses

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ravisaikumar (Querist)
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08 February 2011 expenses incurred to earn short term capital gain (sale of shares). i.e salary paid to a employee to transact shares (buying and selling) is allowable exp in computation of STCG ?

interest paid on loan taken to purchase of shares is allowable exp in computation of STCG?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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08 February 2011 Only expenses on transfer could be allowed like demat charges, brokerage, trnasaction charges and their like.

If you want to claim such expenses then show income from dealing in shares as business income and claim.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 February 2011 These are allowable expenditure in case you show it Trading Income or Business Income . You can claim more expenses under various other heads also.

Whereas in case of STCG you are not allowed such expenditure like employee's Salary, Interest on borrowed funds etc.

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