Business expense deduction in share trading
This query is : Resolved
27 September 2013
DEAR SIRS
I HAVE RECENTLY STARTED TRADING IN EQUITY AND F& O ON A REGULAR BASIS.WHICH OF THE FOLLOWING EXPENSES INCURRED BY ME DURING THE COURSE OF TRADING CAN BE CLAIMED AS DEDUCTION ON ACCOUNT OF BUSINESS EXPENSES
1)BROKERAGE PAID TO BROKER
2)TRANSACTION CHARGES
2) SECURITIES TRANSACTION CHARGES
4)SERVICE TAX ON BROKERAGE
5) STAMP DUTY
6) MISC. CHARGES PAID TO BROKER
7) INTEREST PAID ON FUNDS BORROWED FOR TRADING FROM NBFC'S /FINANCIAL INSTITUTIONS
PLEASE REPLY SOON
THANKS IN ADVANCE
I HAVE RECENTLY STARTED TRADING IN EQUITY AND F& O ON A REGULAR BASIS.WHICH OF THE FOLLOWING EXPENSES INCURRED BY ME DURING THE COURSE OF TRADING CAN BE CLAIMED AS DEDUCTION ON ACCOUNT OF BUSINESS EXPENSES
1)BROKERAGE PAID TO BROKER
2)TRANSACTION CHARGES
2) SECURITIES TRANSACTION CHARGES
4)SERVICE TAX ON BROKERAGE
5) STAMP DUTY
6) MISC. CHARGES PAID TO BROKER
7) INTEREST PAID ON FUNDS BORROWED FOR TRADING FROM NBFC'S /FINANCIAL INSTITUTIONS
PLEASE REPLY SOON
THANKS IN ADVANCE
06 October 2013
Expenses from 1 to 6 are deducted from he sale and added to the purchase cost by the broker itself. So you have to take the net value therefore it is automatically allowed. As regards Interest i.e item No. 7 it depends if it is Short term gains then yes you can adjust the proportion interest and if it is Long term then no it will not be allowed
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