Parag (AM) (60 Points)
23 May 2010
Can anyone help me understand how short tram capital gain is calculated? Can we deduct STT from STCG or it is not deductible? Does the rules apply for both Purchase & Sale transaction or only for Sale?
Can we deduct other expences such as Brokerage, Service Tax, Stamp Duty, SEBI Tax?
RAKESH
(Almost CA)
(2199 Points)
Replied 23 May 2010
short term capital gain is calculated by the difference between the purchase price and sale price. if the transaction has suffered STT then it has to be calculated at special rates i.e 15% and the expenses related to earn this capital gain can be claimed as expenses. ...
Parag
(AM)
(60 Points)
Replied 23 May 2010
Thanks a lot for your reply. It would be really great if you can explain with respect to below example. How should I go about calculating STCG on below transaction? i.e. How much STCG will be there on below transaction.
Example: Share transaction & respective charges on the transaction
Purchase: Date - 01-Jan- 2010 Company - ABC Ltd, Quantity - 50 Rate Per Share - 119.50 Brokerage - 23.90 Service Tax - 2.54 STT - 7.00 Transaction Charge - 0.13 Stamp Duty - 0.60 SEBI Tax - 0.01
Sale: Date - 02-Jan-2010 Company - ABC Ltd, Quantity - 50 Rate Per Share - 123.10 Brokerage - 24.62 Service Tax - 2.61 STT - 8.00 Transaction Charge - 0.14 Stamp Duty - 0.62 SEBI Tax - 0.01
Ramalingam K
(Founder & Director - Holistic Investment Planners (P) Limited)
(21077 Points)
Replied 19 May 2014
The Query
Mr Chaudhury has just sold his old ancestral house for a lump sum consideration of Rs.20,00,000. He has now set his eyes on a new apartment which is due for possession within the next two years. Mr. Chaudhury is in a dilemma, he is aware that the amount he has received is a Capital Gain in his hands and is liable to tax. His intention is to use this fund towards paying for his new abode. What are his options?
Regards
Ramalingam K, MBA, CFP,
Director and Chief Financial Planner,
Holistic Investment Planners
“Best Performing Financial Advisor Award” Winners from CNBC TV18
(Follow us on)
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
