Stcg claiming of expenses

BESIDES INCOME FROM PENSION, RENTS, INTRADAY TRADING PROFITS , I GET STCG on sale of shares post delivery. Income tax demanded on STCG is 15% . Can I claim STT, BROKERAGE , D.P charges ETC as deductions and pay tax on net ? Is there any provision to deduct these expenses say LIKE under sec 48 and show the netted STCG AFTER THESE EXPENSES?

Hi @Xavier_Thilagaraj_Gm

Yes, you can claim the expenses related to transfer as per Section 48 of the Income-tax Act. However, you cannot claim STT as this section specifically excludes any sum paid on account of securities transaction tax.
The tax shall be calculated on the net amount.

Dear All

Can an individual salaried person cum investor, who also does trading of shares on delivery basis, claim following expenses (Expenses which are wholly and exclusively incurred in relation to the buying and transfer or sale of shares) as an expense while calculating the short term capital gain in his income tax return

  1. SGST
  2. CGST
  3. Exchange Transaction Charges
  4. SEBI Turnover Fees
  5. Securities Transaction Tax
  6. Stamp Duty
  7. Brokerage
  8. Clearing Charges
  9. IGST
  10. DP Charges for Sale of Shares

If not all then what all expense out of above can be claimed as an expense while filing the ITR.

@Divya_Singhvi @Saad_C @Laxmi_Navlani @AkashJhaveri @Kaushal_Soni can you help with this?

Hello @sanjaysapra ,

As an investor having STCG from sale of shares, you are eligible to claim all the expenses which are related to transfer of shares.

However, STT paid on transfer of equity shares isn’t allowed as a deduction while calculating the gains as it is specifically excluded. You can refer the below guide for complete information on Capital Gains.

Hope it helps!

Dear Sir

Thanks for your Input. Can you please confirm what all expenses out of below mentioned expenses are treated as expenses related to transfer of shares. Please Ignore Securities Transaction Tax

  1. SGST
  2. CGST
  3. Exchange Transaction Charges
  4. SEBI Turnover Fees
  5. Securities Transaction Tax
  6. Stamp Duty
  7. Brokerage
  8. Clearing Charges
  9. IGST
  10. DP Charges for Sale of Shares

Dear @sanjaysapra,

Apart from the STT you are eligible to claim all of the above expenses as they are in relation to transfer of equity shares.

Hope it helps!

Thanks !

Trust me It is really helpful.

hi ! zerodha tax p&l does not give split up of expenses other than STT segregated into STCG and intraday. How to proceed in this case?

@Aakash_L @Kaushal_Soni can you help with this?

Hey @Xavier_Thilagaraj_Gm

In Zerodha Tax PnL report, charges are given in each segments like Equity, Mutual Funds, F&O, Currency, Commodity etc.

Further, charges are bifurcated in brokerage, STT, Turnover fees, Stamp duty, GST etc for tax payer’s perusal.

Hope, it helps!

Dear Saad_C

Can we claim, the stamp duty paid or deducted for buying the tax saver mutual fund, under section 80C.

Please Confirm.

@sanjaysapra, Any expenses related to transfer of shares (except STT) can be claimed as deduction in case of capital gain income.

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@Nireka, Can we claim, the stamp duty paid or deducted for buying the tax saver mutual fund, under section 80C.

Please Confirm.

@sanjaysapra, you can claim any expense related to the transfer of shares/mutual fund (except STT) when capital gains arise i.e. on the sale of shares/mutual funds.