Adjustment of Broker Commission In Capital gain

Save Share

This query is : Resolved

Quick Summary

Yes, you can generally deduct commission paid to a broker when selling property or shares from your capital gains. This is considered a transfer expense. To claim this deduction, it's essential to have a receipt from the broker as proof of payment. While broker commission is deductible, other taxes like the Securities Transaction Tax (STT) on share sales are not.

Rajinder Kapoor

Rajinder Kapoor (Querist)

29 August 2020 Hello Sir

Can we adjust commission paid to the broker for selling our property from the capital gain and if yes, does it mean that broker should issue us the receipt for the commission paid to him ? Thanks

CA Raj Doshi

CA Raj Doshi (Expert)

30 August 2020 Yes. Can be claimed as Transfer Expenses. A document is important for proving the same.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

31 August 2020 In case of sale of shares,
You may be allowed to deduct these expenses:

1. broker's commission related to the shares sold
2. STT or Securities Transaction Tax is not allowed as a deductible expense.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now