Capital Gains
This query is : Resolved
06 December 2007
Suppose , a man takes takes a loan from the outsider for the trading of shares, they agreed on the following terms....
monthly installment as a repayment of the principal amount i.e., fixed.
And he agreed that he will share only 10% of the only profit and not the loss made by the other as a commission not the interest.
Is this commission will be allowable expense under the capital gains or not....??????
monthly installment as a repayment of the principal amount i.e., fixed.
And he agreed that he will share only 10% of the only profit and not the loss made by the other as a commission not the interest.
Is this commission will be allowable expense under the capital gains or not....??????
07 December 2007
As long as an expenditure is incurred wholly in connection with the transaction, it is allowable. Do not complicate this with share of profits etc. You can enter into payment of commission on the basis only if you make profit, without calling it as share of profit.
07 December 2007
As per Section 48(i) expenses incurred wholly and exclusively in connection with the transfer are allowed as deduction from the full value of consideration.
So in ur case the commission paid for the money used for share trading will be allowed as deduction for computing capital gains.
So in ur case the commission paid for the money used for share trading will be allowed as deduction for computing capital gains.
19 March 2008
yes, it should be allowed as a deduction as but for this expenditure the income would not have arisen.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- ASMT-10 received from A O
- Rental income of jointly held property
- Accounting with Claude
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
