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Are Lawyer fees and Court fees deductible from Taxable Income?

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PB

41 Points Posted on 24 March 2022

Hello -
Are Lawyer fees and Court fees deductible from Taxable Income? I spent about Rs.75000 as court fees and Rs.25000 as lawyer fees from my personal savings. This is property related expense - to get legal heirship from the court (as there was no will).
Please advice.

Thank you.

Replies (4)

Quick Summary

This discussion explores whether lawyer and court fees incurred for a personal property matter, specifically obtaining legal heirship due to no will, are deductible from taxable income. The general consensus is that such expenses are not immediately deductible for the current tax year. Instead, they may be added to the cost of acquisition when the property is eventually sold, impacting capital gains calculations.

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 24 March 2022

Only Business related expenses are allowed
. Is this property stands in your Balance sheet ?.

JJJ

Need help

436 Points Posted on 24 March 2022

If it's for private / personal property, then you can include it in the cost of acquisition when / if you sell it and calculate your capital gains.

But generally there will be no immediate deduction for the current tax year.

PB

41 Points Posted on 25 March 2022

This is my personal flat (home). Not business related.

PB

41 Points Posted on 25 March 2022

This is my personal flat (home). Not business related.

This is my personal flat (home). Not business related.

Read more at: https://www.caclubindia.com/forum/are-lawyer-fees-and-court-fees-deductible-from-taxable-income--587902.asp?offset=1#reply