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Expenses related to investment.

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Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2014 I am having shares in demat account which is shown as Investment in my books.charges are debited for transferring shares from one demat account to other, what will be the effect of the same as per income tax? allowable under business & profession or not?what will be its tax Treatement?

Nikhil Kaushik

Nikhil Kaushik (Expert)

31 May 2014 as long as the shares continue to be in your name, the expense wont be allowed anywhere..

if you are not in business of share trading, claim under business/profession is completely ruled out.

however, the said expense can be claimed in the year in which the said shares are transferred to someone else (meant sold)

Rupesh Jain

Rupesh Jain (Expert)

31 May 2014 you can not claim any exp of demat a/c expenses. you are doing investment in shares., if you are doing business of shares then you can claim related exp of trading of shares. otherwise exp not allowed.

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