Effect of DP Charges


Can DP Charges be deducted while computing Short Term Capital Gains or Long Term Capital Gains on sale of Equity Shares?


Short Answer: Yes

Concise Elaboration: All transaction charges excluding STT paid can be deducted from your Gains.

You may want to consult an accountant for the computation. Cheers.


But even if we sell 1 share or a hundred shares, the DP charge for that debit would be same right? Suppose a guy has 2 shares of a particular company. He sells those shares after some time at a profit of Rs.7 each. But if we consider the DP Charge, he incurs a loss. Moreover, the DP charges get deducted a day or 2 after the sale of the scrip. It doesn’t reflect on the Contract Note.
So is it correct to deduct it from our gains?


The sale transaction of 2 shares in this case has a corresponding dp charge expense. So, you can deduct it from the value you receive for the effected sale because it relates to the same sale regardless of when you actually pay it. (Accrual Accounting)