Capital Gain on transfer of Mutual Funds

Tax queries 505 views 4 replies

Hey,

Whether management fees and custodian fees on Mutual Fund Portfolio are treated as expenditure (cost) on transfer while computing capital gains?

Replies (4)

in my opinion, its available..deduction is available..

I guess the deduction allowed is on the expenditures incurred exclusively on the transfer of the financial assets. Management fees and custodian fees are basically administration fee which in my opinion are not allowalbe.

yes,it is treated as cost on sale.

However entire capital gain arises on sale of Mutual Fund units is exempted U/s10 (23 D).

The above stated expenses are regular in nature and are paid every year and as such while computing taxable income it has already been charged in the respective year.

Therefore such expenses will not be treated as transfer expenses while calculating Capital gain.

regards,

Rahul


CCI Pro

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