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Stamp duty querry???? very urgent?

Tax queries 761 views 5 replies

When stamp duty  is born by buyer fr 2,26,000 n is reimbursed legally frm seller  after actual trf of name of Rs1,13,000 (50%)

 

then for seller wther such stmp duty paid is allowed to deduct frm Cal of capital gains.

 

Pls Give ur views along with reference to any section /case law/notification etc.

Thanks in advance. Views of  CLUB members will be of great help.

Replies (5)

Cost of Stamp Duty bear by Seller will be eligible as Cost of Trabsfer and accordingly will be deducted from Salling Price....


Cost of transfer 

This may include brokerage paid for arranging the deal, legal expenses incurred for preparing conveyance |and other documents, cost of inserting advertisements in newspapers for sale of the asset and commission paid to auctioneer, etc. However, it is necessary that the expenditure should have been incurred wholly and exclusively in connection with the transfer. An expenditure incurred primarily for some other purpose but which has helped in - effecting the transfer does not qualify for deduction. 

Besides an expenditure which is eligible for deduction in computing income under any other head of income, cannot be claimed as deduction in computing capital gains. For example, salary of an employee of a business cannot be deducted in computing capital gains though the employee may have helped in facilitating transfer of the capital asset.

Originally posted by : Arvind

Cost of Stamp Duty bear by Seller will be eligible as Cost of Trabsfer and accordingly will be deducted from Salling Price....




Cost of transfer 

This may include brokerage paid for arranging the deal, legal expenses incurred for preparing conveyance |and other documents, cost of inserting advertisements in newspapers for sale of the asset and commission paid to auctioneer, etc. However, it is necessary that the expenditure should have been incurred wholly and exclusively in connection with the transfer. An expenditure incurred primarily for some other purpose but which has helped in - effecting the transfer does not qualify for deduction. 

Besides an expenditure which is eligible for deduction in computing income under any other head of income, cannot be claimed as deduction in computing capital gains. For example, salary of an employee of a business cannot be deducted in computing capital gains though the employee may have helped in facilitating transfer of the capital asset.

agreed                           

N wther hotel expenses paid exclusively fr stayin der fr 2 days for trf of

name in official document is allowed since we stay in mumbai n land whic is trf is at native place.

Originally posted by : TusharSSampatM.Com CA,CS-FINAL

N wther hotel expenses paid exclusively fr stayin der fr 2 days for trf of

name in official document is allowed since we stay in mumbai n land whic is trf is at native place.


should be allowed......

I dont think so that the hotel expense could be deducted fron the consideration because expenditure incurred primarily for some other purpose but which has helped in - effecting the transfer does not qualify for deduction. The purpose of the hotel was for stay though for the purpose of transfering the title of the land.

Nevertheless the amount will be so small that it would not make any difference whether taking deduction or not .
 


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