Claiming transaction fees in Startup investment

If the fees is related to a business investment, they might be considered business expenses. Check if the fees is deductible under the Income Tax Act for business or investment purposes. 

Check the review Investment Agreements terms related to fees and tax implications.

The ₹43,808 entry/exit fees may be deductible only if they are directly attributable to acquiring or transferring the investment and the applicable tax treatment permits those costs to be included in the investment’s cost or transfer expenses. They are not automatically a separate deduction from tax already paid by the company.

First reconcile the figures and documents: confirm whether the investment was ₹4,98,975 (not “lacs”), whether ₹13,57,295 is the gross exit proceeds or the net amount received, and obtain the exit statement showing the tax paid, fees and any tax certificate. The deductible amount, if allowable, depends on the instrument and how the company taxed the exit; avoid claiming the same tax or expense twice. An Indian startup-investment exit workflow therefore needs a clear reconciliation of proceeds, tax and transaction charges. Manual work across statements and tax records is difficult; automation can reduce repetitive work while keeping professional judgment in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. WhatsApp us to explore this workflow: https://wa.me/message/3HVOZ7HIY4ESC1