STCG in case of shares

This query is : Resolved

rajesh (Querist)
Follow

16 April 2010 Dear All,

I want to know how to calculate short term capital gain in case of share transactions.
Whether Brokerage, Service Tax, Security Transaction Tax, Stamp Duty and Regular charges as charged in bills are deductible in the calculation of short term capital gain?
Thanks.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

16 April 2010 In case of short term capital gain in case of share transactions Brokerage, Service Tax, Stamp Duty and Regular charges as charged in bills are deductible in the calculation of short term capital gain but not Security Transaction Tax.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
Follow

16 April 2010 STT is also deductible from the F.y. 2008-09

Upgrade to CAclubindia Pro. Subscribe Now!

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

16 April 2010 Agree with Aditya Ji.

Your cost price should not include STT and your sale price should not be reduced by STT.

STCG= S.P. - C.P.

Were C.P= Price inclusive of Service tax, stamp duty etc, but excluding STT.

S.P= Price exclusive of Service Tax, stamp duty etc, but inclusive of STT.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

16 April 2010 STT allowable as deduction for income from business & profession only and not from capital gains w. e. f 01.04.2008.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

16 April 2010 AGREE STT DEDUCTION IS NOT ALLOWABLE FROM CAPITAL GAINS.