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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Tax on Deemed Capital Gain
- Section 194JA & JB Income which ITR Form to use
- Booth for sales promotion
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- F & O PROFIT REPORTING FOR AY 2026-27
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
