Can DP charges be claimed as deduction while filing ITR

Ashish_Krishna_K · January 10, 2020, 11:27am

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?

Ashish_Krishna_K · January 10, 2020, 4:05pm

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

siva · January 11, 2020, 3:52am

@Quicko Can you.

Quicko · January 11, 2020, 6:28am

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!

Ashish_Krishna_K · January 11, 2020, 6:30am

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

Subham_Agarwal · April 28, 2020, 11:52am

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

Quicko · May 6, 2020, 12:45pm

@Subham_Agarwal

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.