Also want to know what other things can be considered as expenses if share trading is considered business income? And is there any upper limit for expenses that can be deducted?
Any office expenses
And any other expenses required for Trading can be shown as trading expenses.
No legal upper limit but if u put in a ridiculous amt of expenses then u risk getting scrutiny.
Isnt STT, Turnover Tax etc also deductable ?
You can claim all the expenses which are incurred for Trading as Business. Your primary expenses are STT, Stamp Duty , Sebi Charges , Brokerages etc which are paid to Broking house. If you take help of other or take advisory you can claim all these type of expenses. For administration Internet , Depreciation on Mobile, laptop, furniture etc can also be claimed.
Limit of expenses to the extent used for the business.
as taxiq.in mentioned already… you can claim depreciation of computer, laptop, furnitures, air conditioner, generator, ups etc. Actual depreciation % can be had from incometax website, I hope. Usually the whole expenditure is recovered in about 5 years.
@TAXIQ.IN: The STT, SEBI charges, Brokerage is already deducted before crediting the PNL in the trading account. The amount credited to trading account is net of all costs. Can we claim these expenses again on that profit ? Isnt that double counting ?
Sure, but since you have paid it , it will reduce the taxable income. In business such expenses are considered Cost of goods sold.
You cant claim twice … If Net is taken then its not additional cost.