Brokerage Allowed or not

Tax queries 3677 views 10 replies

HI,

In case I am brought 50 shares of listed co. for Rs.100/-*** each, & sell in a day @ Rs.105/-*.

Then in my taxable income Purchasing & Selling brokerage both having deduction or only selling brokerage have the deduction......

Replies (10)

Dear Chinmay,

When u purchase shares then Brokerage will form the part of yours Cost and when u sale shares the brokerage will be deductable expense from the sale proceeds.

 

Therefore,brokerage on both the Purchase and sale will be allowed.

i do agree with ankur......:)

Thanks for Comment,

 

But what about STT, & the other NSE BSE Charges......

Originally posted by : Chinmay

Thanks for Comment,

 

But what about STT, & the other NSE BSE Charges......

after addition all charges , calculate cost of purchase

after deduction of all charges calculation remuneration of sales 

 

STT/Brokerage, NSDL charges everything

When the assessee is showing his income under the head of Capital Gains , then he should  forget  STT and debit it to Capital Account inspite of claiming it as deduction.

STT as an  expenditure, is allowable to traders only.



5th Proviso to Section 48 clarifies that no deduction is available on account of the STT paid on the Purchase and sale transactions in computing capital gains.

Therefore STT Paid will not be reduced from the Sale Price and will not be added to the Cost of purchase.

 

In my view If NSE and BSE Charges are paid then it will be allowed as deduction.

 

Also I agree with Paras Sir.

 

 

Originally posted by : Chinmay

HI,

In case I am brought 50 shares of listed co. for Rs.100/-*** each, & sell in a day @ Rs.105/-*.

Then in my taxable income Purchasing & Selling brokerage both having deduction or only selling brokerage have the deduction......

Honourable members , 

 

the query is for trading transaction only, where stt is allowed, its not a case of capital gain !!

 

thanks 

however, what if it would have been a capital gains transaction then whether he will be eligible for :

brokerage expenses ??? and what about the service tax, transaction charges, DEMAT charges ????

in case of capital gains, every expense is allowed except STT, here STT is capital expenditure

 

Originally posted by : ANKUR KUMAR

5th Proviso to Section 48 clarifies that no deduction is available on account of the STT paid on the Purchase and sale transactions in computing capital gains.

Therefore STT Paid will not be reduced from the Sale Price and will not be added to the Cost of purchase.

 

In my view If NSE and BSE Charges are paid then it will be allowed as deduction.

 

Also I agree with Paras Sir.

 

 

 Agreed with Ankur & paras sir


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