Can I claim my laptop repair as business expense as laptop used exclusively for F&O trading which comes as Non Speculative income and can be shown as business income ?
Are you serious
Yes you can if the tax return is for income from business or profession.
Laptop repair cost can be shown as expense. But the buying cost of laptop itself cannot be shown as expense; you have to show that as a capital expenditure and claim depreciation on that. Usually you can claim 20% of the cost every year for 5 years. Receipts should be kept safe.
If your equipment, including laptops is used for business purposes than you will be able to present costs of reparation as expenses in balance sheet. These costs will decrease your income, and in this sense you will pay lower corporate income taxes
Any expense incurred solely for the purpose of business can be claimed as a valid business expense against the business income.
It must be noted that the expense needs to be identified as capital expenditure or revenue expenditure.
- Capital Expenditure - add it to the value of capital asset under balance sheet and claim depreciation on it. Eg: purchase of laptop
- Revenue Expenditure - add it to profit and loss account as a business expense. Eg: Repair of laptop
Imp: Valid proof of such expense i.e. bill or receipt should be stored in the records.
If you need any assistance with preparation of Income Tax Return and Tax Audit, write to me on firstname.lastname@example.org
Yes you can and you really should anyway. That’s how all serious business persons write off their expenses and you really can take their example right in that case. What do you say about all that ? I do really not going to make it anyway in full details.
Yes, you can claim laptop repair expenses as a business expenses while filing your ITR. Since F&O trading is treated as a non-speculative business, you are required to file ITR 3 and report income from F&O trading as business income.
The laptop expense should be treated as Revenue Expenditure and will be included in your profit and loss account.
It is advised that you maintain a record(receipts or bills) of such expenses. You may be asked to present their proof in the future.
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