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Stamp Duty paid - CAPITAL GAINS

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CA Naveen Chand

Chartered Accountant

12739 Points Posted on 28 July 2021

Hello Members,

Whether Stamp duty paid shall be included in Cost Of Acquisition while calculating Capital Gains?

Replies (6)

Quick Summary

This discussion clarifies whether stamp duty paid can be included when calculating Capital Gains Tax (CGT). Members confirmed that stamp duty paid on the purchase of a property should be added to the cost of acquisition. For stamp duty paid on the sale of a property, it can be deducted as a transfer expense from the sale consideration.

Vasudevan C P

403 Points Posted on 28 July 2021

Yes Naveen, it can be deducted while calculating CG

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 28 July 2021

Yes stamp duty is included while calculating Capital gains

CA Naveen Chand

Chartered Accountant

12739 Points Posted on 28 July 2021

thanks! either add in COA or deduct as transfer expenses while calculating CG?

CA Naveen Chand

Chartered Accountant

12739 Points Posted on 28 July 2021

stamp duty paid on the sale of immovable property shall be taken as transfer expenses?

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 28 July 2021

add in COA for capital gains

Nidhi

Chief Accountant

3150 Points Posted on 29 July 2021

1. Stamp duty paid on purchase of property - Add in cost of acquisition
2. Stamp duty paid on sale of property - deduct from sale consideration as transfer exp.