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expenses in acquiring capital gains

Amit Gupta (Employee) (128 Points)

15 May 2009

Hi,

Can brokerage and Demat charges paid while acquiring shares as investments can be claimed under expenses? Can it be deducted from capital gains to calculate total capital gains?

Thanks

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3 Replies

Satish (CA Final Student) (479 Points)
Replied 15 May 2009

All the expenses relating to acquisition of shares would be added to cost of acquisition of shares whereas the expenses relating to sell would be deducted from sales consideration to arrive at the net capital gains

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N.J.R (Practice) (346 Points)
Replied 15 May 2009

Brokerage is deductible exp. However, STT should not be considered as part of acq. cost or selling price. As far as demat charges are concerned, i think it's not deductible.

Vivek Tibrewal-Kolkata (Asst. Manager - Taxation) (65 Points)
Replied 15 May 2009

Hi Amit

I think, brokerage paid while acquiring shares will be added in the cost of Investment, but for Demat charges you have to claim as expenses separately. Demat Charges not to be adjusted with the Capital Gain.

Vivek