Expense on Transfer

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Commission or brokerage paid on transfer of an asset. Whether it could be reduced from the sale amount as expense on transfer before calculating the index cost of acquisition.

Any case laws on this?

Replies (4)

YES COMMISSION OR BROKERAGE WILL BE DEDUCTED FROM SALE CONSIDERATION.

I DONT HAVE ANY CASE LAW ON THIS.

The sale value is to be reduced with the amount of Commission or brokerage the following calculation may help you.

Sale consideration                  100

Less: Expenses on transfer  (10)- Commission-brokerage-stamp duty

Net Sale Consideration           90

Less: Indexed C.O.A.               XX

Amt. chargeble to tax

it do not require case law- it is method of calculation

i und the method of calculation. The reason for putting up the post was because the act does not specifically speak about the various expenses on transfer. This is the reason why i enquired if there was any case law.

 

Thanks for your valuable inputs.

Dear Dhawal,

yes the same is allowable ded , u can refer following case laws:

1) CIT Vs. Subaida devi, 160 ITR 557 (Ker)

2) CIT Vs Venkataraman, 137 ITR 846(Mad)

3) Abdul quayume Vs. CIT, 184 ITR 404 (All) 

Regards

Kanti jain

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