Capital gains on shares

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shivam hy

yel

83 Points Joined April 2014

Sir, I have some issue over calculation of capital gains on shares . 1.service tax 2.security trans. tax 3. brokerage 4.transaction charges Sir, how to treat these 4 items on buying and selling. whether they add on purchase cost or selling price please tell

Replies (1)

sivaram

Asst Mgr-Taxation

6918 Points Joined April 2009

whether they are short term or long term ? you can deduct from sale consideration the brokerage paid if SECURITIES TRANSACTION TAX IS PAID SHORTTERM CAPITAL GAINS IS COMPUTED @ 15% as per section 111A and if it is a long term it is exempt from capital gains tax as per sec 10(38).It is presumed that shares are equity shares and listed on a recognised stock exchange