Cost of asset
SHIVANI KUDTARKAR (511 Points)
09 February 2021
whether brokerage paid to different brokers should be added to cost of godown purchased
SHIVANI KUDTARKAR (511 Points)
09 February 2021
Nandakumar K Konkar
(Partner)
(246 Points)
Replied 10 February 2021
Yes, Section 48 reads as under:
'The income chargeable under the head "Capital gains" shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely :—
(i) expenditure incurred wholly and exclusively in connection with such transfer;
(ii) the cost of acquisition of the asset and the cost of any improvement thereto:....'
As explained by others above, brokerage paid to different brokers is allowable, provided (i) clear nexus between brokerage & sale
transaction & (ii) proof of brokerage payment exists (preferably by mode other than cash)
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