Transfer-linked expenditure rules allow only direct transfer costs to reduce capital gains; unrelated charges remain non-deductible.

Expenditure incurred wholly and exclusively in connection with the transfer of a capital asset is deductible from the full value of consideration for capital gains computation. The decisive test is the nexus with the transfer, not whether the expense was incurred before or after the transfer. Brokerage, commission, stamp-related costs, and other payments necessary to effect the transfer may qualify, while amounts lacking that direct connection, such as certain interest charges or portfolio management service fees, are not deductible. The same expenditure cannot be claimed again under another head of income.

---

---

---