STCG ON EQUITY SHARES

This discussion clarifies the charges deductible from short-term capital gains (STCG) on listed equity shares for Income Tax purposes under Section 111A. It explains that while expenses connected to the transfer are generally deductible, Stamp Duty and other transaction charges like exchange fees, SEBI turnover fees, and DP charges can be added to the purchase value to arrive at the Cost of Acquisition (COA). Importantly, Securities Transaction Tax (STT) paid on purchase or sale is not deductible for STCG under Section 111A, unless the share sales are treated as business income under Section 28, where STT becomes a business expenditure.