STT payment not allowed as expense when computing income under 'capital gains'

Comments 0
The period of holding of the previous owner will also be taken into account. The period of holding of the previous owner will also be taken into account.
SummaryAs per Section 2(42A) of the Income Tax Act, 1961, if an asset is received by way of inheritance, the period of holding of the previous owner

STT, service tax, etc, be considered as sale value?

— Vimal Modi

The cost of acquisition of shares would include expenses incurred on purchase of shares like service tax, stamp duty, brokerage, etc., except STT. Similarly, consideration received on sale of shares should be after deduction of service tax, stamp duty, brokerage, etc., except STT.

Section 48 of the Income Tax Act states that while computing the income chargeable under the head ‘capital gains’, any payment made for securities transaction is not allowed as expenditure.

* The writer is founder of RSM Astute Consulting Group

* Send your queries at fepersonal finance@expressindia.com

Single Page Format
Ads by Google

More from Personal Finance

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...