Can GST be claimed as business expense in Income Tax?

Taxation
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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.

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@Quicko

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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

For further queries and help for tax filing, write to us on [email protected]

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btw does quicko hav integration with zerodha to automatically pull STT + other eligible business expenses & total them for FY ?

If not then how to find the total expenes from zerodhav ?

5

Hello @chacha

Yes, we have integration with Zerodha. You can import the trade details on a single click and while importing we do accommodate all the allowable expenses against the trades incurred on Zerodha like STT, GST, Exchange transaction charges etc.

You can visit quicko.com and connect Zerodha App to import all the trades.

Thanks

6

question about subscription expenses -

do you claim based on the purchase date only ? (assessment year only)

lets say I buy a 3yr subscription; can it be spread over 3 yrs

7

Hello @chacha

Income Tax Act follows payment basis and not accrual.

Thus, you can claim the entire expense in the year of purchase and not over a period of 3 years.

Hope, this helps.

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