Im pretty new to trading and ive done f&o trading in high numbers at low profit or gain.
My f&o profit is 25k while brokerage, stt and other charges add up to 15k which i have paid. While filing itr do i have to put my f&o profit as 25k-15k=10k or the entire 25k as taxable business income and pay tax on that based on tax slab?
Your tax liabilities are calculated post brokerage, post STT and charges paid. Additionally, you can claim depreciation of your trading computer, wifi bills, mobile bills, some part of your electricity bills as your trading expenses.
The best way to save on taxes is to first hit the taxable ā¹7.5 lakh mark. If you manage of generate ā¹7.5 lakhs of profits, get yourself a CA at some ā¹5000 and save lots on taxes.
If you have other income that pushes your income beyond ā¹7.5 lakh. Iād advice to get a CA.
Good luck. Prioritize on the ā¹7.5 lakh income mark and everything else is secondary at this point.
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