Whether Demat charges, Transaction fee on MF & STT is allowable in calculation of capital gain...........?? and why.........??
Arun Prasadh
(Practicing CA)
(49 Points)
Replied 30 June 2012
Demat Charges are levied for for keeping the securities in dematerialised form.
As per section 48, while computing capital gains only expenses incurred in connection with transfer are allowed as deduction.
Since demat charges are not incurred in connection with transfer they can't be deducting while arriving at Capital gains.
However commission paid to brokerage for selling the shares can be reduced while arriving at capital gains.
Regards,
Arun Prasadh
CA Gaurav Choradia
(Relationship Manager )
(418 Points)
Replied 30 June 2012
STT is specificaly allowed in PGBP so not allowed under Capital Gain...
and transaction fees is allowed if there is STCG on share or MF
sanket
(CA)
(75 Points)
Replied 03 July 2012
Thanks.....Arun, but if you have any case study reference for allowability of commission paid to broker for selling the shares can be reduced while arriving at capital gains
CAclubindia
