How is realised profit calculated on Kite?

[Abhi_Thk]

As per Zerodha Tax P&L for last financial year my account shows Short term profit of 2 lakhs and total charges of 25 thousand (which includes STT, brokerage etc).

Does the 2 lakh short term profit is net of the above charges or I need to deduct 25 thousand from 2 Lakhs for taxation purpose? So that the taxable amount is 2 lakh - 20,000 = 175000

thank you.

[ShubhS9]

The profit you see is excluding the charges. You will have to account charges separately.

[Abhi_Thk]

So I need to deduct the charges from the profit?

My taxable short term profit would then be 175000. Right?

thanks for the reply.

[SG_13]

@Abhi_Thk

My taxable short term profit would then be 175000. Right

@Abhi_Thk

total charges of 25 thousand (which includes STT, brokerage etc).

All charges excluding STT can be claimed as an expense against capital gains.

@Quicko

Expenses that are wholly and exclusively incurred in relation to the transfer of shares are allowed to be deducted from sales consideration. Expenses such as brokerage, stamp duty, sales commission, etc. can be claimed as an expense in your Income Tax Return. All these expenses are allowed as deductions only for the purpose of calculating the Capital Gains. However, Securities Transaction Tax (STT) is not allowed as a deduction.