Guidance Required on Claiming Tax Charges (STT/CTT & GST) for Trading Losses

Tax planning 830 views 5 replies

Elakiaraj Thiru

10 Points Posted on 11 September 2025

Hi,

My name is Raj, and I run a photography business registered under MSME Udyam Aadhar as a proprietorship. Since I operate on a small scale, my business generates modest income. In addition to this, I am also involved in intraday option trading.

So far, I have been incurring losses from trading, which I have duly reported in my ITR filing.

However, I have noticed that STT/CTT and GST charges on my trades are increasing based on my trading volume. Approximately ₹10,000 to ₹18,000 per quarter is paid towards STT/CTT and GST.

Is there any way to claim these tax charges back, or set them off against other taxable income?

Please advise.

I appreciate your time and efforts.

Regards,
Raj

Replies (5)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211643 Points Posted on 12 September 2025

For intraday trading, many expenses such as GST, STT, and related charges can be claimed as business expenses when filing income tax returns, as trading income is shown as business income. e.g.

Brokerage Fees: Deductible as a direct trading expense.
Transaction and Exchange Charges: Includes SEBI fees, exchange transaction charges (NSE/BSE), and other similar levies.
Securities Transaction Tax (STT): Can be claimed if trading income is reported under “Income from Business or Profession”.
Stamp Duty: Paid on transfer of securities; allowed as a business expense.
GST on brokerage and transaction fees: GST paid on these trading services is a deductible expense if not registered under GST. If registered, it may be claimed as input tax credit.
Internet & Communication Expenses: Proportionate costs relating specifically to trading activities are allowable.
Depreciation on Trading Equipment: Computers and software used for trading are eligible for depreciation as a business expense.