05 April 2012
Whether the expenses like Sebi fees, demat charges , STT Service Tax are allowed for calculating STCG or not? if not then under which section it is not allowed Please reply asap
06 April 2012
Section 48 provides that only expenditure incurred wholly and exclusively in connection with transfer are allowed as deduction while computing capital gains.
SEBI fees, demat charges are not incurred wholly and exclusively in connection with transfer.
Further, 5th Proviso to Section 48 provides that no deduction shall be allowed under the head Capital Gains for STT paid.
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