Can DP charges be claimed as deduction while filing ITR

I have a gross short term realised gains for this financial year, but when I deduct the total DP charges for the year the net gains goes down significantly. So can I minus the DP charges and include only the net Short term gains while filing the ITR?

Brokerage + All charges like STT, ETT, etc + DP can be negated from the profits. You can even show Bill of Internet and other charges like (Annual AMC, charges if you subscribe to any advisory or trading software etc etc) and deduct them from your profit if you show trading as a business while filing ITR.

Thank you for your response. But I want to confirm, can DP charges be deducted from STCG while filing ITR.

@Quicko Can you.

Hi @Ashish_Krishna_K,

Short Term Capital Gain (STCG) is covered under the Capital Gain Income Head. Hence you can claim all the transfer expenses except STT (Securities Transaction Tax) while filing ITR.

Hope this helps! For any further questions feel free to connect with us here at Quicko, we’ll be happy to help!

Thank you @Quicko team for the response and also @siva for guiding the query to the right team.

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@Ashish_Krishna_K so can we remove DP charges while filing for STCG?


Yes, you can claim DP Charges while calculating STCG. Since this is an expense incurred exclusively in connection with the transfer.​​ And it will reduce your total taxable STCG.

Also, you can set off your STCG against Long Term Capital Loss (LTCL) if you have any.

Read More: Set off and Carry forward of losses under the Income Tax Act.

Hope this helps. :slightly_smiling_face: