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Expenditure of telephone, petrol expenses from STCG u/s 111A

Tax queries 818 views 1 replies

For, A.Y. 2008-09, Mr. X has a salary income of Rs. 12,000/-. Apart from this he has a profit from trading in commodity of Rs. 1,00,000/- and from trading of shares Rs. 40,000/-. Will X be allowed telephone , internet, petrol expenses from STCG u/s 111A,i.e. from the above Rs. 1,40,000/-??

Replies (1)

Sec. 111A talks about the rate at which STCG in case of (i) equtiy shares or (ii)equity oriented mutual funds are taxed (i.e. at the rate of 15% for AY 2010-11). this section does not say anything about the method of calculating STCG for which normal provisions are applicable.so, while calculating STCG, as we know, incidental expenses incurred wholly and exclusively for the transfer of capital asset can be deducted. so i think the said expenses can be deducted from the STCG referred to in sec 111A provided it is incidental to the transfer...please lemme know if the above if wrong :)


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