Dematerialisation charges tax deductible

Taxation
1

Greetings,

Are the dematerialisation charges (cost of converting physical shares to demat account) a permissible deduction for computing capital gains tax?

Thanks

2

Hi @ags3010

Generally, expenses that are wholly and exclusively incurred in relation to the sale/ transfer of shares are allowed as deductible.

@Quicko @Jason_Castelino your thoughts on this?

3

In my opinion, it’s not allowed. Above mentioned expense is not for the purpose of acquisition of the asset. And in case of financial instruments, cost of improvement and maintenance is not allowed to be deduced.

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