Brokerage deducation on STCG

while calculating the capital gains sec 45 says the expenses related the sale shal be deducted frm the FVC and the purchase related xpenses just add to the COA...

so here

ur COA = 43800+296= 44096

ur NVC = 50300-340=49960

stcg

            49960 (50300-251.5-25.9-62.88)

less:   44096 (43800-219-22.55-54.75)

           = 5864

Are you sure that Service Tax and Securities Transaction Tax (STT) can be deducted in this manner? I was under the impression that only brokerage can be deducted. Hoping to have clarity on this soon. Thanks!!

it is clear in section that the expenses related to the sale are to be deducted from the consideration, so the total taxes n brokerage r to be deducted... n same in case purchase too...

STT is capital expenditure in case of capital gains, however its allowable expenditure if such transactions are part of business of trading in securities.

STT can neither be added to COA, nor it can be decucted from Sales proceeds.

So from what I gather, in the case of an individual who is not a trader only brokerage and service tax is deductible while STT is not an acceptable deduction.

So therefore the STCG calculation in the given example would be:

                                    50022.60  (50300 - 251.5 - 25.9)

                         LESS 44041.55 (43800 + 219 + 22.55)

  Therefore STCG = 5981.05       

Is this correct? Thanks in advance                          
 

Yes,your last calculation is correct.While Brokerage and Service-Tax are allowable for adjustment from Purchase/Sale Values,STT is not.

brokerage is deductible from stcg