Hi @navu2023
Seems to be a typo on my end. Apologies for the same.
Once can claim the DP charges for arriving at the net capital gains.
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Are Exchange Turnover Charges deductible too? These are charged per trade.
Thanks @Shrutika_Shah
One more que… pls answer asap
If for a individual tax payer his father aged more than 60 is a pensioner with pension 14000/pm then for that taxpayer, can his father and/or mother both aged more than 60 be called a dependent senior citizen parent ?
I wanna know if any one them can be called “dependent” for sec 80D ?
Hi @navu2023
Yes, they will qualify for the deduction u/s 80D if they are 60 or above.
You can read about Section 80D: Deduction for Medical Insurance Premium - Learn by Quicko
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Can we claim MTF interest paid as expense.
Yes, when calculating equity capital gains, you can deduct the Depository Participant (DP) charges for selling stocks from your demat account, which are charged by entities like CDSL or NSDL. These charges are considered part of the transaction cost and can be included along with other expenses like brokerage, exchange transaction charges, GST, SEBI turnover fees, and stamp duty.
Regarding the tax regime, if you have opted for the new tax regime for the financial year 2020-21, you can switch back to the old tax regime for the subsequent financial years if it proves to be more beneficial for you. The option to choose between the old and new tax regimes is available on a yearly basis, allowing taxpayers to select the regime that results in lower tax liability each year based on their income and deductions.
Hey @Durgesh_Gupta,
You can claim the interest as an expense in case of business income, i.e. if you have done intraday or F/O trading. In case of capital gains, the interest cannot be claimed as an expense.
Can I deduct interest charged by a broker on a marginal trading facility while computing my capital gains? What if I disclose my trading activity as my business income? In that case, will I be able to deduct the same? Kindly provide solutions for both scenarios.
If not deductible, why? Please provide appropriate reasons and rules. Additionally, is there any case or judgment on the disallowance of interest expense for capital gains since it is purely used for acquiring shares?
Hey @nithesh_nahar,
Interest paid towards Margin trading can be claimed as an expense if you are reporting your share trading as business income. In case you report profits as capital gains and pay tax on STCG or LTCG then the interest cannot be claimed to reduce the profit.
Hope this clarifies!
@Surbhi_Pal
Thanks for your response.
(Commissioner Of Income-Tax vs M/S.Trishul Investments Ltd on 12 July, 2007)
(https://taxguru.in/wp-content/uploads/2016/04/Fritz-d.-silva.pdf)
In the above cases the bench provides a favorable judgement to the assessee where the interest can be part of COA .
But i am still confused since i am not able to find any proper rule/provision if the interest can be part of COA,
It would be help if you can share us with any rule/provision where it supports that interest shall or shall not be part of COA.
Team - Are Investors (Delivery based trading only) having only STCG & LTCG allowed to claim as deductions in ITR for expenses for fees paid for investment-related subscriptions like say Screener.in / Trendlyne / TradingView – to reduce your taxable income?
Hey @ZubinBaben,
No, in case of capital gains, you cannot claim such expenses.
Only in the case of business income which includes profits from intraday or F/O trading, expenses made in relation to the trading business can be claimed as an expense.
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