Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177741 Points)
Replied 22 July 2019
Yes allowed when properly recorded with due justification.
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 22 July 2019
1. As per sec 48 relating to the mode of computation of capital gains, it is read as "expenditure incurred wholly and exclusively in connection with the transfer" will be allowed as deduction while computing capital gains.
2. In your case, all the above expenses will be allowed as deduction provided proper bills and vouchers are available for the above expenses. There is no restriction on payment made to watchman as the amount involved is only Rs. 2,000 but there must a bill supporting the above payment in order to claim the same as a deduction.
Please correct me if the above solution has an alternative view.
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