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Tax treatment of intraday charges

Tax queries 299 views 1 replies

I have a query on tax treatment of intraday charges (like STT, brokerage, Exchange charges and all other taxes) that we incur during intraday trading (speculative business income).

Can intraday charges be used to show as expense for business income to reduce taxable income for current FY or do these charges have to be carried forward similar to intraday losses and can be set off only against speculative gains in any of the next 4 FYs

Eg. For FY 2016 – 2017 my intraday charges are Rs.1000, intraday losses Rs. 3000 and business income is Rs.50000 so can I reduce my business income by intraday charges ie Rs.1000 to show my taxable income as Rs.49000 for FY 2016 - 2017

Thanks

Replies (1)

No. The expenditures are suppossed to be included in the same business venture........... and hence to be carried forward as speculative loss.


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