Hey, Income from F&O is considered as non speculative business and hence your loss from F&O can be set off against intraday gains
Expenses like brokerage, DP, etc are included in the cost of acquisition and you can claim these expenses while filing your ITR. However, you can’t claim STT expense against your capital gain
You can claim expenses like depreciation of asset or anything other expense that is directly connected to your business while filing your ITR.
If you are looking for help to file your ITR, our experts have got your back! Visit: https://meet.quicko.com/, enter your income situation, choose your slot and we will match you with a tax expert specializing in your in your income situation
Can you please let me know, how to add a trader’s expenses to tax planner/tax filing form?
For example, how to add an amount that is spent on a YouTube channel subscription related to trading?
Hi @Nagaraj_Chillale, you can add this expense under two brackets- Advisory Expense or Other Expenses when you are filing your return through Quicko. Let me know if you need any further assistance, would gladly assist you.
Welcome @Nagaraj_Chillale, when you are using the tax planning product, only input your Net Income which essentially means removing your deductions from your Gross and then putting in the value.
The picture demonstrates if you have a turnover of 5,00,000 and an expense of 50,000 over your gain of 1,50,000 then only input 1,00,000 as your Net P&L (1,50,000-expense of 50,000)
I was trying to file my returns through Quicko for the first time. I have income from my job and also some F&O trades (business income). Importing the form 16 data related to my job was seamless; I used the Zerodha P&L report and got the F&O details as well. But one thing i observed in the auto uploaded data was the ‘delayed payment’ charges that I have paid to zerodha for over utilization of non-cash margin component which is significant is not taken into consideration for expenses. Is this right? ITR 3 is being used for filing.
Hey, you can add your expenses while filing your ITR on Quicko. Here’s a guide that can help you with adding your business income along with claiming expenses
Hi, if I give advice to someone on Fno trading and want to charge a fees for this. Can I do that? I do not have any certifications, not am I a registered advisor with SEBI. Is there any rule under which I can charge fees and that person can show it as an expense from the Fno income.
F&O trading is treated similarly to any other business and hence is considered as Income from Business & Profession(Section 43(5) of the Income Tax Act). Therefore, you will be eligible to claim a deduction in respect of expenses incurred for earning F&O income.
Here’s a read on Expenses a Trader Can Claim in ITR - Learn by Quicko for your reference.
According to Income Tax Rules, you are required to keep proper vouchers, bills in support of your claim for expenses and maintain proper books of accounts for F&O business.
Hi, thanks. Kindly shed some light on other part of the doubt. That is - can a person who is not sebi registered advisor charge consultancy fees for advising on FnO trades?
Hi @Sumit_Gupta
Any person who wishes to carry on investment advisory services for its clients should get themselves registered as Investment Adviser (IA) with SEBI
Here’s a read for your reference. Click here.
