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Deduction of Brokerage, STT...from Trading Income

Tax queries 6149 views 5 replies

When computing the total taxable income where should the following be deducted with respect to speculative income from intraday trading & short term capital gain from cash trading & mutual funds :

- Brokerage

- STT (Securities Transaction Tax)

- Transaction & SEBI Turnover Charges

- Stamp Duty

Replies (5)

 

Add this expenses in cost of acquisition 

in intraday trading ( speculation business) all expenses are deductible

in capital gain. STT is not deductible,  

In case of Speculative Income from Intraday Trading, the same will be considered as business income, from which all expenses are deductible.

However, In case of short term capital gain all expenses are deductible as Expenses of Transfer (Other than STT, which is specifically excluded)

Sharma, Kanhaiya


That means for Capital Gain (ST or LT),

Income = Sell Value - Buy Value - Cost of Acquisition(excluding STT)

I may just be rephrasing, but wanted to make sure. Can u give me any section reference ?


 

Share sell value minus cost value if shares was in hand more than three years than you could take benefit of cost inflation index…

You can minus expenses brokerage or commission from profit according to above calculation…


CCI Pro

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