regarding share market

This query is : Resolved

Ajay (Querist)
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18 September 2010 if there is Short term Capital Gain from stock market

1.can one claim Demat charges n DP AMC as expenses n deduct same from his STCG

2.if one has taken Loan (unsecured or secured) for stock market trading. can he deduct interest paid there on from STCG

3.if one is paying Consultancy fees for TIPs related to Stock market. can he deduct same while calculating STCG

if in above 3 case.
how will one treat this expenditure,which are paid by Cheque n for sure is not a part of his Drawings.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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18 September 2010 1. Yes you can consider it as expenses on transfer.

2. you can but please also refer circular no. 4/2007 where it has been stated that if borrowed funds are used in investing in shares and earning profit on sale of shares then the profit may be treated as business income and not capital gains

3. Yes u can.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 September 2010 In all case 1 you can claim expense even it you hold it investment.

But in case 2 & 3 you can claim expense only if you held it as stock .

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