Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

EXPENSES DEDUCTIBLE WHEN COMPUTING CAPITAL GAIN FROM SHARES SOLD THROUGH DELIVERY AFTER PAYING STT

421 views

Save Share

v ramachandran

retired

35 Points Posted on 29 July 2023

I shall be thankful if any qualified Tax expert can clarify whether in addition to BROKERAGE, other expenses namely 1)GST 2) SEBI TURNOVER FEES 3)STAMP DUTY 4)EXCHANGE TRANSACTION CHARGES 5)DEMAT FOLIO CHARGES AND 6) DEMAT DELIVERY CHARGES can be deducted from the Capital Gain earned by buying and selling shares ON DELIVERY before arriving at the net Capital Gain liable for Income Tax. STT is NOT deductible expense, and I need a clear cut clarification on the above mentioned heads with regards to the prevailing Income tax laws and rules.PL CLARIFY

V RAMACHANDRAN.

rvrv002 @ gmail.com

Replies (2)

Quick Summary

This discussion seeks clarification from tax experts on which expenses can be deducted when calculating capital gains tax on shares sold via delivery. The user specifically asks if brokerage, GST, SEBI fees, stamp duty, exchange charges, and demat charges are deductible before arriving at the taxable capital gain. The response indicates that GST is not a deductible expense, and other tax-related charges are also generally not permissible deductions.

CA Aakarsh Jain

10436 Points Posted on 29 July 2023

Hello, any charges related to tax are not deductible. In your points, GST is not deductible. If you need any further details then please check out your inbox.