Can an NRI claim transaction charges?

Can an NRI claim transaction charges and PIS reporting charges levied on every transaction of buy and sell of equity delivery shares under expenses like Brokerage, Sebi, stamp duty, etc under expenses?

@CA_Niyati_Mistry Can you please help here.

Hi @Shrav3,

An NRI can claim the expenses incurred wholly and exclusively in relation to the business income from shares.

In case the shares are taxed as Capital Gains then the expenses regarding brokerage, stamp duty, etc shall not be allowed.

Hope this clarifies!

But in other topic posted “Expenses deductible when calculating capital gains” mentioned that we can deduct Brokerage, stamp duty, sales commission, DP charges(only transaction charges relevant to transfer of shares but not administrative or maintenance charges), etc as expenses under capital gains of ITR-2 filing! why is that?

Hi @Shrav3 ,

In case you are reporting the Sale of Equity Shares as Capital Gains, you can claim the expenses which are incurred wholly and exclusively to Sell the Shares meaning without incurring those expenses the sell cannot be made. Any admin charges, fixed fees, etc. which are not necessary to make the sell, cannot be claimed as expenses. Securities Transaction Tax (STT) though incurred to Sale the shares cannot be claimed as expense.

Hope this clarifies!