Expenses related to Capital Gain on share listed abroad
This query is : Resolved
19 July 2011
As part of Employee Share Purchase Plan, I made some STCG from sale of share listed on New York Stock Exchange. To encash the Dollar cheque of sale proceed, I incurred expenses on foreign currency conversion charge & cheque proccessing fee. Please let me know whether these expenses can be deducted while calculating STCG in this case.
20 July 2011
Dear Deb,
As per section 48 of the IT Act, 1961, "expenditure incurred wholly and exclusively in connection with such transfer" should be allowed as deduction from full value of consideration received or accruing as a result of transfer of capital asset. In your case, you have incurred expenses to repatriate the foreign receipt in India, which are not incurred wholly and exclusively in connection with sale of shares in New York Stock Exchange. Hence, in my opinion, such expenses would not be allowed to be deducted while calculation STCG in this case.
As per section 48 of the IT Act, 1961, "expenditure incurred wholly and exclusively in connection with such transfer" should be allowed as deduction from full value of consideration received or accruing as a result of transfer of capital asset. In your case, you have incurred expenses to repatriate the foreign receipt in India, which are not incurred wholly and exclusively in connection with sale of shares in New York Stock Exchange. Hence, in my opinion, such expenses would not be allowed to be deducted while calculation STCG in this case.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- Event company query
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
CAclubindia
