Can we deducting stock exchange brokerage from capital gains

Brokerage & commission may be deducted as well as STT paid can also be deducted

Hello Ruchikaji,

As per the article below, STT charges cannot be deducted while computing capital gains on equity stock and MFs:

https://economictimes.indiatimes.com/wealth/tax/playing-the-stock-market-heres-how-to-compute-capital-gains/articleshow/54790989.cms

See section Expenditure on Sales/transfer. It says STT charges cannot be deducted.

Most stock trading websites while giving Capital Gains PDF statements are not deducting anything from the Capital Gains.

Hence my question whether the websites are right, or are the taxpayers allowed to deduct Brokerage and other charges on buy and sell segments.

Right. Only brokerage can be deducted.

Most trading websites when giving the capital gains statement they are not deducting anything. They simply perform Sell minus Buy and display the Capital Gains statement.

In case of Mutual Funds, what charges can be deducted from the Capital Gains under "Expenditure on Sales/transfer"?

Only brokerage / commission

But MFs do not have buy and sell Brokerages & Commissions.

Originally posted by : Ruchika Somani
	Only brokerage / commission

What about annual demat charges? Most banks collect Rs 700 to Rs 850 charges for a demat trading account. Can these charges be deducted? 

Originally posted by : J S BHAVSAR
	Originally posted by : Ruchika Somani Only brokerage / commission What about annual demat charges? Most banks collect Rs 700 to Rs 850 charges for a demat trading account. Can these charges be deducted?

Nope.

In act it clearly says only Commission & Brokerage and STT paid is allowed to be deducted

Originally posted by : Ruchika Somani
	Originally posted by : J S BHAVSAR Originally posted by : Ruchika Somani Only brokerage / commission What about annual demat charges? Most banks collect Rs 700 to Rs 850 charges for a demat trading account. Can these charges be deducted?  Nope. In act it clearly says only Commission & Brokerage and STT paid is allowed to be deducted

But one Economic Times Article clearly says STT cannot be deducted.

Originally posted by : J S BHAVSAR
	Originally posted by : Ruchika Somani Originally posted by : J S BHAVSAR Originally posted by : Ruchika Somani Only brokerage / commission What about annual demat charges? Most banks collect Rs 700 to Rs 850 charges for a demat trading account. Can these charges be deducted?  Nope. In act it clearly says only Commission & Brokerage and STT paid is allowed to be deducted But one Economic Times Article clearly says STT cannot be deducted.

Yes