Can I claim MTF interest as expense while calculating STCG?

Income Tax 1961 Income from Capital Gains
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1

Hi ,

Good day, i have short term capital gain and MTF interest paid to the broker for swing trading.

I would like to file it as business income next year. Can you suggest is it possible to claim the interest as an expense and show the short-term capital gain?

Also, is it possible to show the STCG as business income to claim the MTF interest?

2

Once you choose to treat STCG as business income, you should consistently follow this method in subsequent years and you can claim MTF Interest, but in case of STCG you cannot claim MTF expense.

3

Thankyou Diksha.

For this year I have profit in f&O and Intraday. But I have inncured the losses in swing trading. Can I settle my losses of Swing equity trading against f&O and claim the MTF interest as well if I file it as business income.

4

Yes, you can offset your swing trading losses against F&O and intraday profits if you classify your income as business income.

5

Let’s keep MTF aside. For normal equity delivery STCG u/s 111a, can the person choose to not show it as STCG@20% and choose to show it as business income?

Say, a person was showing gains as STCG in previous years. Now, if he wants to shift to show it as business income. How can he proceed? Under which conditions can he change the intention?

6

Hello @S_Gupta,

You can read our detailed article on Can I report capital gains as business income in my ITR?

Happy to help!

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