Allowable expenditure for income tax purpose

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PRATIK SHARMA (Querist)
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29 February 2012 Any Commission paid to broker for purchase & sale of property can be a allowable expenditure for Income tax purpose if TDS has been deducted at the prescribed rate...

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 February 2012 Yes, the commission paid to the broker at the time of purchase shall be added to the cost of acuisition.

The commission paid at the time of sale shall be reduced from sale price as expenses on transfer.

PRATIK SHARMA

PRATIK SHARMA (Querist)
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29 February 2012 Thanks for your reply.But my question is that can the purchaser treat the commission paid as business expenditure, if TDS is also deducted on that amount??

KRISHNA KUMAR R C

KRISHNA KUMAR R C (Expert)
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29 February 2012 You can treat the same as business expenditure, if the property you have purchased is for carrying on the business and the same is allowable under Income Tax.