Tax Glossary Definition
Brokerage is the fee or commission paid to a broker for facilitating transactions, such as buying or selling securities, commodities, or other assets. It is usually calculated as a percentage of the transaction value and is considered a legitimate business or investment expense in many cases.
Example: The brokerage paid on share trading is treated as an allowable business expense and can be deducted while computing taxable income from capital gains or business income.
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