STT Paid On Shares Is Not Accounted For While Calculating Capital Gains

While computing the capital gains on sale and/or transfer of a capital asset, you have to deduct the sale price from the purchase price. Any amount paid as brokerage for getting the transaction of purchase and sale executed has to be taken into account. So, you can include the brokerage paid in the cost price of the shares and deduct the brokerage on sale and/or transaction from the sale price to arrive at the net sale price realised. 

As far as STT is considered, Section 48 of the Income-tax Act, 1961 specifically provides that STT paid on these transactions cannot be taken into account while computing capital gains on equity products, such as shares and units of equity-oriented mutual schemes. Do note that if the share profits are taxable as business income, both brokerage and STT can be taken into account. The exit load paid on mutual funds is deductible from the redemption price of the units of mutual fund schemes as there is no express provision under the law against it.

The amount paid by your son as contribution towards household expenses incurred by you for the family in case your son stays with you will not constitute income. In case the son does not stay with you and is sending this money to help you financially, it can be treated as a gift by him to you. 

Though gifts are treated as income and taxed in the hands of the recipient if the aggregate of all gifts received during the year exceeds Rs 50,000 in a year, gifts received from specified relatives, including own children is not treated as income. Since the gifts from specified relatives is not considered as income at all hence is not required to be disclosed in the income tax return (ITR).

Since the house was constructed before April 1, 2001, your father has an option to take the fair market value of the house as on that date as his cost of acquisition of the house, including the land value for the purpose of computation of capital gains. This grandfathering provision ensures that any appreciation of the house till April 1, 2001 has become tax free for your father. 

For ascertaining the fair market value of the house on April 1, 2001, you have to obtain a valuation certificate from a registered valuer. You can also adopt the stamp duty value popularly called as circle rate in case such rates for 2001 are available. Please note that under no circumstances the fair market value of the property can be higher than the circle rate on the same date.