Expenses a trader can claim

If I am using a laptop exclusively for F&O Trading, can I claim repair charges on it as a business expense while filing ITR?

Hey Kunal,

Yes, you can claim laptop repair expenses as a business expense while filing your ITR. Since F&O trading is treated as a non-speculative business, you are required to file ITR 3 and report income from F&O trading as business income.

The laptop expense should be treated as Revenue Expenditure and will be included in your profit and loss account.

It is advised that you maintain a record(receipts or bills) of such expenses. You may be asked to present their proof in the future.

Hope this helps :slight_smile:

Hi, if I buy 2 mobiles, 2 laptops, 2 tablets and 2 screens for my trading, can I claim all these under Business Expenses? Is there a limit to how many items we can claim under Business Expenses like only 1-2 mobiles, 1-2 laptops, etc?

Hi @Aditya,

You can claim the expenses directly connected to the trading income as a deductible. The expenses incurred should be wholly and exclusively in relation to business and professional income.

Yes, these devices are wholly and exclusively in relation to business. So, if suppose I want to make different pc setups and in 2 different rooms then I am going to need more number of these devices like laptop, screens, pc, etc. So, is there a limit or not on the number of these devices or not?

Hi @Aditya, any device having a useful life of more than 1 year is considered as a fixed asset and is to be taken into the balance sheet of your business/profession.
On which you can claim the depreciation at the applicable rate, which will be used to set off against your profit.

There is no limit on the number of assets, however, the assessee should be able to prove their usability in relation to business/profession.

Thank you so much for the information. I searched everywhere but finally, here I got a clear response.

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I have another question. Suppose I buy some devices in 2nd quarter, now should I deduct the depreciation amount myself and pay the remaining taxes in Advance tax or should I pay full tax on the profits and then in Assessment Year file for the refund of taxes on these Business Expenses?

Hi @Aditya, the idea with advance tax is you pay your tax liability before the end of the financial year. In case you have excess tax credits you can claim a refund when filing your ITR

When calculating your Advance Tax you subtract all your deductions and expenses. Here’s an article to help you understand better

You can use the Advance Tax Calculator

Thank you so much for the answer.

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I bought an Laptop primarily for F&O trading last year. How much depreciation can i claim on it? Also if i choose presumptive taxation, can still show depreciation ?

Hey @satheeshb, you can claim 40% depreciation. You can’t claim depreciation if you choose the presumptive taxation scheme.

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If a business has a pending invoice to be paid from FY20-21 which is paid in FY21-22 before the IT deadline does it still count as an expenditure in FY20-21? @TeamQuicko

hi @d.r

Expenses can be claimed on accrual basis if you are using mercantile system for accounting. If there is an invoice of FY 20-21 for which payment is made in FY 21-22 it can still be counted as an expenditure of FY 20-21.

which type of expenses can be claimed for intraday, LTCG, STCG &FnO Trades…

can we claim Brokerage,SEBI Charges,SGST,IGST ,CGST,Stamp Duty,STT…etc…
kindly guide

Hi @Shanmukh, you can claim all the expenses directly connected to the trading income. Make sure the expenses incurred should be wholly and exclusively in relation to business and professional income which in your case is intraday trading.

some expenses are cant claim under intraday like STT…can this be claim for FnO…

Hi @Shanmukh

You can claim STT as an expense in case of equity intraday since it is treated as Speculative Business Income. And yes it can also be claimed against F&O.

However, you cannot claim STT against LTCG and STCG as they are treated as Income from Capital Gains.

Hope this helps :slightly_smiling_face:

can i claim internet expenses and mobile expenses in STCG or LTCG…?

Hi @Shanmukh

No, only the expenses related to the transfer of shares will be allowed against STCG or LTCG.