Calculation of Income Tax on Short term Gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2011 Hi ,
While computing Income from Short term Share trading Do We take into account The Service Tax, Securities Transaction Tax,Delivery charges by the Broker into account.
Suppose I bought a share @ Rs 10
and sold it a Rs 12 . In the meantime the STT,Service tax , delivery charges add up to Rs. 0.50
so my net profit from this sale is Rs. (12-10-0.5)=Rs. 1.5
or is it
Rs. (12-10)= Rs. 2
Income tax is to be paid on rs .1.5 or Rs. 2

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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07 July 2011 We can take all charges chaged by the broker except STT while calculating capital gain/ loss.

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2011 Sir,
So does this means I have to pay taxes on all charges including Delivery charges , brokerage charges,Service tax except STT ?

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Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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08 July 2011 You have to pay tax on Rs.1.5.You have to add STT to the profit and have to pay tax. If Stt is Rs 0.1 out of Rs o.5. Your Profit would be 1.6 and has to pay tax on that