Hii…this year my total gross profit in banknifty options intraday 17 lac, net profit is 7 lac and my brokrage is 6 lacs …can I claim this brokrage to reduce the taxation???plzzz rep …
Expenses that are wholly and exclusively incurred in relation to the transfer of shares are allowed to be deducted from sales consideration.
A trader can claim expenses such as brokerage, stamp duty, sales commission etc. However, STT can not be claimed as a deductible expense for STCG. It can be claimed as a business expense if he/she reports such income as a business income.
Read more about Expenses a Trader Can Claim in ITR - Learn by Quicko.
Hope this helps!
Hi,
I am a salaried person and have done fno trading.
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My first query is, I do Work from Home for my job as well as do FnO trading from my rented room. Can i claim a proportionate amount of house rent as a business expense, as i spent some hours daily for trading.
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If I have 1 Lakh loss in Intraday share trading and 4 Lakhs Profits in FnO trading (Turnover 10L). Overall 3 Lakhs profit as business income. Is Audit needed in this case?
Can I merge both income and directly show 3 Lakhs profit as business income?
Hi @pun447
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You can claim all the expenses incurred in relation to the transfer of shares. You can claim the proportionate rent as an expense. Make sure you save the rent receipts and rent agreement as valid proof.
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Intraday is considered speculative business income and FnO is considered non-speculative business income. Hence, the intraday loss cannot be adjusted against FnO gains. So, you cannot show 3 lakhs as the total business income.
Audit applicability depends on the turnover. You can read about the audit on intraday and FnO trading.
Hope this helps.
I am salaried person (working from office not WFH) and also do F&O trading. Can i claim furniture (chair and table) and internet bill as expenses against F&O trading profits.
Hi @Bab_Toto
Yes, you are eligible to claim furniture expenses and internet bills as business expenses against F&O trading, if these expenses are directly related to your trading business.
Delayed payment charges in zerodha can be shown as expenses during the filing of ITR?
Yes, delayed payment charges incurred in Zerodha can be claimed as an expense during the filing of ITR.
Hi,
I am senior citizen and used to do option trading on MCX ,NSE from my personal account (and not business acount). if i receive some gain on intraday option trading on MCX,NSE can i show some expenses in terms of training, consulting etc to reduce my taxes to be filed to income tax department. i observed this benefit i can use if i am earning from business account.
Yes, you can claim all the expenses incurred wholly and exclusively for your intraday trading as your business expense while filing your ITR.
Appreciate your quick response. is it applicable for trade from personal account. do we have any limit on these expenses .
Hi,
I trade in all segments. My FnO ended with a mere 18k profit. There is a slight intraday loss of 7k. Main profit is from LTCG & STCG but I guess business expenses can’t be offset against capital gains.
I have genuine expenses in terms of rent, software, consulting fees, travel expenses, and electronics like AC, monitor, etc, amounting to around 3 Laks in FY23 (with bills and all online transactions)…all of these are exclusively related to trading and not for personal purposes.
My question is, can I really show 3Laks expense for 18k profit under FnO and show net business loss of -2.82k, otherwise can I distribute 1.5 lac expense, each under FnO and intraday equity (since both of them come under business income)?
By doing this, I hope to offset my net business loss this year (including expenses) against the future year’s net positive business income (if and when that happens).
If this is possible, where can I get help from quicko in filing all of these, preparing books of accounts if needed, etc without mistakes and confusion? The ITR-3 package from Quicko will do all of this?
Thanks!
Hi @M_Sridhar
Yes, you can claim all the expenses incurred wholly and exclusively for your trading business.
You will definitely get all the help from Quicko, when you book a MEET and the tax expert shall help you at every step.
Hi
Can you help me out regarding the distribution of the expense part?
Out of the 3Lakh expense, should I distribute it under non-spec and spec? Or can just show it under one heading of my choice. If so, what should be the ratio? Does it depend on turnover or P&L ratio between F&O and intraday equity? Or something else? Thanks!!
@Laxmi_Navlani should we prove that the person is expert in giving consultancy services (with a proper professional degree ?). Or we can also take suggestions from father and pay consultancy fee to him ?
Hi @csteja
The person should have a proper degree, experience or expertise in the particular area of consultancy service.
i pay salary / commission to a person who helps me in trading e.g: giving tips etc ;
that person is not having certifications or any degree .
is this valid ?
Hi @HIREiN
If you can prove in case the ITD asks, that the person has the expertise, then it is valid.