What expenses can a trader claim while filing the ITR?

Income Tax Income from Business or Profession
104

Hi @raj50098,

Yes, you can claim the laptop purchased as a business expense as depreciation as you have made the online transaction for purchasing the laptop.

Hope it helps.

105

thanks for clarifying

106

if i have income from intraday trading.
can i deduct brokerage, stamped duty, SEBI, Exchange Charges. in a New Income Tax Regime.

107

Hi @Aadil_Nakhwa

Expenses that are wholly and exclusively incurred in relation to the transfer of shares are allowed to be deducted from sales consideration even under the new regime. Expenses such as brokerage, stamp duty, sales commission, etc. can be claimed as an expense in your Income Tax Return. All these expenses are allowed as deductions only for the purpose of calculating the Capital Gains. However, Securities Transaction Tax (STT) is allowed as a deduction for business income.

108

Please clarify Brokerage and stampduty charged by broker should be shown as Expenses in Profit&Loss Account or in Trading Account as direct expense?
Thanks

109

Hi @raj50098

If trading is your primary source of income, then you can claim the brokerage & stamp duty charges as direct expenses in Trading Account.

110

Thanks for reply. Please tell
Should broker’s AMC charges and STT should be also shown in Trading Account or P&L Account.
Thanks

111

Hi @raj50098

Broker’s AMC charges can be shown as an expense in the Trading account.
A trader can claim STT paid as a valid business expense if he/she reports such income as a business income.

Hope this helps.

112

Thanks, Please tell=
Can bank expenses such as Chequebook issue charges, and atm yearly charges be shown and deducted in P&L Account by the Trader?
thanks

113

Hi @raj50098

Expenses that are wholly and exclusively incurred in relation to the transfer of shares are allowed to be deducted from sales consideration.

114

Hi,

I have STCG which I need to add during ITR filing. But I am little confused on few of the things listed below :

  • Can I deduct Brokerage Charge, Exchange Transaction Charges, SEBI Turnover Fees, Securities Transaction Tax and Stamp Duty from the STCG value ?

  • Can I deduct DP charges from STCG value ?

If I can deduct then how to claim these deductions while filing ITR ?

115

Hi @enigma

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.
Yes, you can claim DP Charges while calculating STCG, since this is an expense incurred exclusively in connection with the transfer.

You can deduct these expenses from the STCG to reduce the amount of the gain.
Here’s how you can Add Capital Gain Income : Help Center on Quicko.

Hope this helps.

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116

Hi @Shrutika_Shah

Thanks for the detailed information.

Also one more thing related to STCG I have a query. If I hold foreign securities and have incurred a loss overall, can that be used to offset the gains ?

Also what about the AMC Charges. Does it qualify as Transfer Expenses ?

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117

Hi @enigma

Yes, loss from foreign securities can be carried forward and set off.
Read about the Tax on US Equity in India - Learn by Quicko for a better understanding.

Hope this helps.

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118

Hi @Shrutika_Shah

Thanks for the information. It really helps

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119

In this it is mentioned that “Broker’s AMC charges can be shown as an expense in the Trading account.”

Does this mean that during STCG I can’t claim this expense but if I claim as business expense then it is valid ?

120

Hi @enigma

STT is an expense that can be claimed if the income is reported as business income.
When there is STCG, STT cannot be claimed as an expense.

121

Hi @Shrutika_Shah

Yes, I understood about STT charges. Actually I am asking about AMC Charges that we will incur quarterly basis. Can that be used in Transfer Expenses of STCG claims

122

Hi @enigma

AMC charges cannot be claimed as transfer expenses.

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123

Thank you for the information

1 Like