Treatment of expenses while calculating cap gain on shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2012 friends can anyone tell that while calculating capital gain on sale of shares , what will be the treatment of expenses incurred on transaction , such as service tax , turn tax , other charges etc.
whether these will be deducted from sale consideration or will be ignored.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 November 2012 Service tax, transaction tax and brokerage paid at the time of purchase shall be added to the cost of the asset.

Similarly, service tax, transaction tax and brokerage paid at the time of sale shall be reduced from the selling price.

Please note that Securities Transaction Tax (STT) is NOT allowed as deduction.

Accordingly it will NOT be added to the cost and it will NOT be reduced from the selling price.

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2012 thank you very much Siddhartha Bhardwaj

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 November 2012 You are welcome. You should use the thanks button to convey your thanks.

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