I want to purchase a laptop for F&O trading. Can I claim it as an expense?

Income Tax Income from Business or Profession
1

Hi,

Thanks for all your help in connection with taxation. Please see if you can help me with my query:

No salary income
Have some stocks trading in come

Recently, started trading in F&O and made some profit till now. Would like to purchase laptop with around 80000 for F&O trading use. Can my entire laptop cost be treated as business expenses for the current FY?

Thanks for your in advance.

2

Very helpful discussion on claiming a laptop as an expense for F&O trading! It’s great to see the clarification on tax deductions and how it applies to business expenses

3

@Fitfuture
Important Points for Claiming Laptop as Business Expense:

  1. Laptop expense cannot be claimed 100% in the year of purchase. Instead:

    • It must be capitalized as an asset
    • Depreciation can be claimed at 40% per year using WDV (Written Down Value) method

  2. Documentation Requirements:

    • Invoice must be in your name (business owner)
    • Payment should be made through banking channels (not cash)
    • Keep all purchase documents and payment proofs safely

  3. Calculation Example:
    If laptop cost is ₹50,000:

    • Year 1: 40% of ₹50,000 = ₹20,000 depreciation
    • Year 2: 40% of ₹30,000 = ₹12,000 depreciation
      And so on…

Remember: Incorrect claims or lack of proper documentation may lead to disallowance during tax assessment. Always maintain proper records and follow depreciation rules as per Income Tax Act.