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Correct way to calculate capital gains on shares

Tax queries 269 views 3 replies

When one buys or sells shares from the NSE/BSE and pays STT these are the additional expenses one incurrs :

Brokerage                        
GST                            
Securities Transaction Tax (STT)
Stamp Duty                        
SEBI Turnover Tax                
GST on  SEBI Turnover Tax.

What is the correct way to calculate short or long term capital gains on shares?

For example, can GST or STT be considered a "expense"?     
 

 

Replies (3)
As per the provisions of the Income Tax act all expenses incurred for purchase of shares form the part of cost of acquisition of asset except the STT hence, STT is a cost which would not be allowed as expense while calculating capital gain.
regards
Kanj Goel

Thanks.

So all expenses,during buying as well as selling, except STT can be considered as a expense (for calculating cap gains) ?

I think stt IS allowable expenses


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