Hi, As I know we can show Brokarage, STT charges as Business expense if we show Trading as Business but I have a confusion that Can I show GST , Exchange Tansaction Charges, Sebi Turnover fees, Stamp Duty charges and Exchange penalty charges for margin shortfall as Business expense?
For clearification, I am showing Trading as Business in my Income Tax File.
Any expense incurred for trading can be claimed as a valid business expense in P&L Account if trading is considered as a Business Income. However, the Income Tax Act does not allow claiming an expense paid in the form of penalty. Any expense charged by the broker in the form of a penalty cannot be claimed as a business expense.
You can read about what expenses can a trader claim
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