I need to calculate Capital Gain on Shares for filling ITR.I have 2 queries;
1. Is the below formula to compute Capital gain on Shares is correct?
Capital Gain = [Sale Price – Cost of expenditure (i.e brokerage + Transaction Charges + Stamp duty)] – [Purchase Price + Cost of Acquisition (i.e brokerage + Transaction/Turnover Charges + Stamp duty)].
2. Is GST paid while purchasing shares added to the Cost of Acquisition and Cost of expenditure OR it is completely excluded from calculations like STT?
1 – Yes.
2 – There is no GST implication when you buy or sell shares as GST is already included in your brokerage cost.
Thank you Srikanth for quick response. With respect to GST implication, I checked the contract notes of broker, he charge GST separately and it is not included in brokerage. So the question remain, whether I consider it Capital gain calculation or exclude it altogether like STT?
If it’s excluded from the cost (brokerage) then I believe that you can claim it as cost of acquisition. You may kindly re-check with a CA as well!
i have purchased 1000 shares of iob @92 in 2013 and holding the same as on today and again i have purchased 1000 shares of iob @9/- in 2020.if i sell 1000 shares of iob @11 whether i have to pay stcg or i can claim in income tax return as long term capital loss