for example if i purchase / take loan / pay rent commercial / office space for F & O trading & also purchase vehicle to travel to that place .
can these be treated as part F & O business expenses & deducted
Thank you
Yes. With no doubt all the expenses (except for capital expenditure) directly related to conducting your trading activity is deductible from your trading Income.
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Since you’re treating derivative trading as a business activity, the income tax department allows you to deduct incidental expenses from the profit you’ve derived from the same.
Even though Capital Expenditure is not deductible but if you’re purchasing a vehicle for this business then you’ll also be allowed deduction for depreciation on the vehicle which you wouldn’t have otherwise. The other business expenses you make need to comply with the prevalent Income Tax Regulations. A general suggestion would be to maintain meticulous records for all your expenses and then employing an accountant at the year end to manage your accounting paperwork.
(Bonus: You’d also be able to claim deductions for the charges paid to your accountant.)
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Thanks Mohit , who needs accountant when there are people like you & prakash helping out with everything 