(i) Full Value of Consideration is the sale price of the capital asset, without deducting brokerage and other charges.
(ii) The cost of acquisition is the purchase price of the asset which includes all the expenses directly related to the acquisition of the asset, including the purchase price, brokerage charges, commissions, transfer fees, legal fees, etc.
iii) It is recommendable that you mention all your expenses incurred related to the sale of an asset and consider net asset value. But it is totally up to you if you want to show zero expenses and take Net Sale Value as Full Value of Consideration.
No, you cannot deduct thec AMC (annual maintenance charges) paid to a broker for calculating capital gains.
You can claim expenses such as brokerage, stamp duty, sales commission, etc. can be claimed as an expense in your Income Tax Return.
LTCL cannot be set off against STCG, so you can carry forward the LTCL to future years.
Why arenât all the taxes and charges incurred upon buying and selling equity shares in a particular F.Y. arenât deducted from the LTCG and STCG in Quicko? The tax liability would ease off.
Once you import your trading details from Zerodha, the taxes and charges incurred are automatically fetched on Quicko. However, as STT cannot be claimed as an expense while calculating capital gains, it is not reflected.
Hi, I have a query on whether this income is required to be included in my income tax return?-
Below is the document I received from ASK Real Estate Special Opportunites Fund
This is in reference to your investment in ASK Real Estate Special Opportunities Fund (âthe Fundâ), a domestic venture capital fund registered under the Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996. As per the provisions of section 115U of the Income-tax Act, 1961 (âthe Actâ), the income arising to the Fund from investments in venture capital undertakings (âInvestee Companiesâ) will be chargeable to tax in the hands of the beneficiaries in the same manner as if the beneficiaries had directly invested in the Investee Companies. Further, if the Fund has incurred losses from investments in the Investee Companies, such losses will be allowable in the hands of the beneficiaries in the same manner as if the beneficiaries had directly invested in the Investee Companies.
Further, in respect of income which is not exempt in the hands of the Fund under section 10(23FB) or any other section of the Act, the Fund has taken a position that the tax liability on such income will be directly discharged by the beneficiaries.
The detail of such income is provided in point number 2 and 4 of the Annexure.
The beneficiaries are required to pay tax on the income accrued / arisen / received by the Fund. If income accruing or arising or received by the Fund during the year, is not paid or credited to the beneficiaries, it shall be deemed to have been credited to the account of beneficiaries on the last day of year.
Attached as Annexure is a statement showing your share in the income (interest, dividend, short-term / long-term capital gains/loss, etc.) arising from your investment in the Fund, the expenses incurred by the Fund, tax deducted at source by investee companies. It may be noted that the Fund has not discharged any tax liability and requests you to discharge the
tax applicable on your share of income.
Proportionate share in the gain being short term capital
gain on account of sale of units of mutual fund
computed in accordance with the provisions of the Act = Rs. 5
Proportionate share in the interest income earned by
the Fund (Debenture) = Rs. 256000
Proportionate share in the interest income earned by
the Fund as a result of delay in capital contribution = Rs.70
Proportionate share of expenses incurred by the Fund*
(Fund administration expenses) = Rs.1501
PLEASE HELP WITH THIS QUERY- IT WILL BE HELPFUL IN DETERMINING WHETHER I HAVE TO PAY SO MUCH TAX OR NOT
Hi, I have a query on whether this income is required to be included in my income tax return?-
Below is the document I received from ASK Real Estate Special Opportunites Fund
This is in reference to your investment in ASK Real Estate Special Opportunities Fund (âthe Fundâ), a domestic venture capital fund registered under the Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996. As per the provisions of section 115U of the Income-tax Act, 1961 (âthe Actâ), the income arising to the Fund from investments in venture capital undertakings (âInvestee Companiesâ) will be chargeable to tax in the hands of the beneficiaries in the same manner as if the beneficiaries had directly invested in the Investee Companies. Further, if the Fund has incurred losses from investments in the Investee Companies, such losses will be allowable in the hands of the beneficiaries in the same manner as if the beneficiaries had directly invested in the Investee Companies.
Further, in respect of income which is not exempt in the hands of the Fund under section 10(23FB) or any other section of the Act, the Fund has taken a position that the tax liability on such income will be directly discharged by the beneficiaries.
The detail of such income is provided in point number 2 and 4 of the Annexure.
The beneficiaries are required to pay tax on the income accrued / arisen / received by the Fund. If income accruing or arising or received by the Fund during the year, is not paid or credited to the beneficiaries, it shall be deemed to have been credited to the account of beneficiaries on the last day of year.
Attached as Annexure is a statement showing your share in the income (interest, dividend, short-term / long-term capital gains/loss, etc.) arising from your investment in the Fund, the expenses incurred by the Fund, tax deducted at source by investee companies. It may be noted that the Fund has not discharged any tax liability and requests you to discharge the
tax applicable on your share of income.
Proportionate share in the gain being short term capital
gain on account of sale of units of mutual fund
computed in accordance with the provisions of the Act = Rs. 5
Proportionate share in the interest income earned by
the Fund (Debenture) = Rs. 256000
Proportionate share in the interest income earned by
the Fund as a result of delay in capital contribution = Rs.70
Proportionate share of expenses incurred by the Fund*
(Fund administration expenses) = Rs.1501
Q1. Is the above procedure valid for ITR-2 return also?
Q2. Can we say that half (of the expenses) are included in the cost of acquisition?
And the other half expenses are actually shown in the expenses column?
Q3. Where should we include the expenses incurred during buying of the securities:
in the cost of acquisition or the expenses?
I too have the same question⌠Can any expert respond?
Also zerodha does not deduct these expenses while calculating the STCG or LTCG
Does this mean, we canât deduct these are expenses for LTCG and STCG?
Cost of acquisition is the price inclusive of the expenses incurred for the acquisition of the asset. The expenses incurred for the sale of the asset can be claimed as transfer expenses.
Buying expenses should be included in the cost of acquisition of the securities.
@Venkat_Naidu Except for STT which cannot be claimed for calculating LTCG/STCG, Zerodha takes into account all the expenses.