Capital Gain Calculation

[Ethirajan Parthasarathy]

Dear All

As per paper report published at the time of budget 2024 revenue secretary Mr. Sanjay Malhotra has clarified that stamp duty etc, incurred at the time of purchase of property will not be considered for calculation of capital gain.

Is his view binding on Income tax Department and whether his view is correct as per law?

Please clarify.

AI Summary

Capital gain calculation: whether excluding purchase stage stamp duty via administrative clarification binds the tax department and lawfully applies.
Whether stamp duty and related expenses paid on purchase of property are excluded from cost of acquisition for computing capital gains, and whether a revenue secretary's public clarification to that effect is binding on the Income Tax Department and legally correct under the capital gains framework.