Are payment gateway charges deductible while filing ITR

Taxation
1

Hello

As per Can DP charges be claimed as deduction while filing ITR - #5 by Quicko all expenses other than STT can be claimed. Does this mean we can claim payment gateway charges as well ?

Also, if so can zerodha provide a tab in the downloadable P&L Tax excel sheet regarding all the charges that can be claimed against every stort term or long term trades ?

2

Yep, you can claim payment gateway charges as a deductible too.

You can find it in the other debits & credits tab in the tax P&L sheet. All the charges in this tab can be claimed against gains from your trades - STCG, LTCG, or business income (in case of F&O or intraday transactions).

2 Likes
3

Also just for your information, UPI does not incur any payment charges.

1 Like
4

Hi @Hritik_Vijay

You can claim payment gateway charges if the same has been incurred for the purpose of the sale/transfer of the shares.

5

All the charges in this tab can be claimed against gains from your trades

The following are also present in the Others tab:

  1. Delayed payment charges
  2. Bank account modification
  3. AMC for demat account

Are these also deductible ? They don’t seem to be exclusively used for transfer.

6

Apportioning the AMC for equity transactions might be difficult. However, if you are accounting for your trades as business income (this won’t be true for cases where one is accounting for trade gains as STCG/LTCG in equities), you will be able to claim this as business expenses.

7

Got it. So, it’s a no for regular STCG/LTCG investors. Thanks !

1 Like