Net Consideration = Sale Value - Transfer Expenses When you sell any asset, there are associated costs called transfer expenses. A ggood example is brokerage and STT on selling shares. If you sell shares worth 100 and the brokerage plus STT was 1, then the net cosideration is 99. Lowering the net consideration by subtracting the transfer expenese reduces the capital gains tax since Capital Gains = Sale Value - Transfer Expenses - Indexed Purchase Price Here Indexed Purchase Price = Purchase Price * CII of the sale year / CII of the purchase year.