Allowability demat charges etc in capital gain

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

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
 

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