Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

How to find out STCG from share transactions?

Tax queries 884 views 2 replies

HonestTaxpayer

Software Engineer

104 Points Posted on 28 July 2009

Hi experts! :)

Lets say cumulatively I bought shares worth Rs 100. Brokerage/commission/STT amounted to Rs 5 while buying. I then sold them for Rs 90 while paying brokerage/commission/STT of Rs 5 again.

Now in this, what are the following:

a) Full value of consideration

b) Cost of acquisition

c) Cost of improvement

d) Expenditure on transfer

e) STCG

Thanks in advance :)

Replies (2)

Aditya Maheshwari

CA in Practice

35867 Points Posted on 28 July 2009

STT is not allowed as a deduction for computation of STCG/STCL and generally the charges levied are adjusted in the sale / purchase price.

a) Full value of consideration: 90 - 5 + 1 (say STT) (STT should be excluded) = 86

b) Cost of acquisition: 100 + 5 - 1 (say STT) = 104

c) Cost of improvement: NIL

d) Expenditure on transfer : NIL

e) STCG: - 18 Loss

HonestTaxpayer

Software Engineer

104 Points Posted on 28 July 2009

Actually the trasactions in my account show only BROKERAGE ... nothing is specified in terms of STT or commision separately ... so in above calculation, if 5 is the brokerage then everything stays the same right?

Except that the "1" (STT) disappears ... it doesnt appear in calculations ... right?