Comment on Taxation Simplified

Nithin Kamath commented on 31 Jan 2013, 04:44 AM

Hi Mandar,

STT is part of your cost, so yes it is an expense but cannot be a tax deductible. So what this means is if you bought 100 stocks at Rs 100 and all your costs(including brokerage, STT etc) adds upto Rs 15, then your actual buying price becomes 100.15. If you sell this stock at 101, the actual cost becomes 100.85( after your costs). Hence your net profit is Rs 70 and not Rs 100.

So yes, STT and other costs becomes part of the cost(or an expense as you said).

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