What Expenses Can a Trader claim in Income Tax Return?

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Sakshi Shah

F&O Trading
income from trading
Income Tax
ITR-3

A trader can claim all the expenses directly connected to the trading income as a deductible. The expenses incurred should be wholly and exclusively in relation to business and professional income. Therefore, these expenses include business expenses such as:

ITR for F&O Traders
CA Assisted Income Tax Return filing for Individuals and HUFs having income from F&O/ Derivatives Trading.
[Rated 4.8 stars by customers like you]
ITR for F&O Traders
CA Assisted Income Tax Return filing for Individuals and HUFs having income from F&O/ Derivatives Trading.
[Rated 4.8 stars by customers like you]

Can I claim Tax paid as Business Expense?

Note: Trader having income they classify Capital Gains cannot claim any trading expense except Brokerage. This can happen in the case of traders investing in equity delivery and mutual funds.

Confused on how to classify income from sale of shares?
Read here to understand if this income classifies as Business Income or Capital gains!
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Confused on how to classify income from sale of shares?
Read here to understand if this income classifies as Business Income or Capital gains!
Read More

FAQs

Can I claim GST paid as a business expense?

CGST, SGST, IGST paid on expenses is deductible as a valid business expense only if is the business has no GST Registration. If the business is registered under GST, they can claim the credit of Input GST against Output GST. Hence, they are not allowed double deductions. Thus, they cannot claim GST paid as a business expense.

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