• Capital gain account money utilization

Sir , i had capital gain of around 30 lac on sale of flat in Oct 2016. I deposited in capital gain account in July 2017 before itr date. Now if I purchase flat to get exemption,the stamp duty on purchase of flat and other expenses would be allowed in this 30 lac or not. Provision is that to exemp tax you have to purchase flat before two years
Asked 12 months ago in Capital Gains Tax from Delhi, Delhi

Only brokerage can be allowed as an expense. Stamp duty cannot be recovered

Meera Anand
CA, Ambala
76 Answers

4.8 on 5.0

yes stamp duty and brokerage etc allowed as investment. in this actually you have to options

1 consider stamp duty as cost of investment

2 consider stamp duty as deduction under section 80C

Lalit Bansal
CA, Delhi
597 Answers
41 Consultations

5.0 on 5.0

Dear Sir,

Expenses incurred for completing the title are a part of the cost of acquisition.

Stamp duty expenses and other expenses i.e. brokerage, registration fees are allowed as part of the cost of the acquisition.

Note- No deduction of the same expense would be allowed under other provisions of the Income Tax Act i.e. no double deduction allowed.


Vivek Kumar Arora
CA, Delhi
2715 Answers
124 Consultations

5.0 on 5.0


Yes you can take the stamp duty and brokerage as a cost of acquisition.



Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0


Yes, such expenses including stamp duty paid shall be allowed as part of exemption. You can capitalise these costs as cost of acquisition of the property.

Make sure, when you are capitalising these costs, do not claim deduction under 80C in this regard.

Lakshita Bhandari
CA, Mumbai
3231 Answers
152 Consultations

5.0 on 5.0

Allowed Stamp duty other direct exp like brokerage etc .

Nitin Jain
CA, Jaipur
128 Answers

4.7 on 5.0

Hi Sir,

As per Income tax Act, the stamp duty and registration charges paid on purchase of new property shall be allowed u/s 80C.

The exemption on purchase of new property is restricted to the consideration amount paid to the builder/seller.

Also if the cost of flat exceeds 30 Lakhs then whole 30 lakhs shall be exempt from tax.

However if the cost of flat is less than 30 lakhs say 24 lakhs then the balance (6lakhs) shall be chargeable to tax under "Long Term Capital Gains".

Hope this resolves your queries!

Siddhant Shah
CA, Mumbai
110 Answers

5.0 on 5.0


You may consider the stamp duty and brokerage as a cost of acquisition and claim exemption.

Ensure that you don't claim deduction u/s 80C for the same.

Abhishek Dugar
CA, Mumbai
3576 Answers
170 Consultations

5.0 on 5.0

Yes. Stamp duty and registration charges are allowed.

Narendra Sonagra
CA, Ahmedabad
29 Answers

Not rated


You can consider the stamp duty and brokerage as a cost of acquisition and claim the deduction.

Make sure you don't claim any other deduction in this respect under Income Tax.

Rupali Gupta
CA, Bikaner
16 Answers

Not rated


All expenses directly related to transaction can be claimed as expenses. it will be added to cost of acquisition.

Hope it clarify.

Swati Agrawal
CA, Mumbai
1106 Answers
4 Consultations

5.0 on 5.0

Dear Sir,

Hope you are doing well !

Any expenses which are attributable to the purchase of property are allowed to be added in the cost of acquisition of the property. Hence, expenses like stamp duty, freehold charges, etc., will be added to the cost of the property. However, these payments must be evidenced by the proof of actual payment.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
2439 Answers
32 Consultations

5.0 on 5.0

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