Can’t comment about your CA but I repeat what Income Tax Law says.
“Any expense for the purpose of trading is allowed”
Thank you for your reply. Also kindly advice if taking loan is allowed for fno trading.
There is no law which says you cannot take loan for FnO trading. So you can take loan. As I already said it should be a dedicated loan for trading. Who gives loan for FnO purpose is the thing you should look for because I believe nobody gives such loans.
Problem is most ‘Personal Loan’ terms do not allow borrowing for that purpose. So you will have to lie about your purpose.
It’s not in law. But banks do not lend for the purpose of trading. The banks ask for financial feasibility of the business. How will you determine the future cash flows? Since there is a lot of uncertainty involved, the banks won’t lend.
As per IT Act you can claim the expenses if you manage to get the loan.
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Isnt taking loan and trading very risky, i’m no one to give advice, but a word of caution from fellow trader.
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In that case, it appears that one take loan from friends and pay them interest and claim it as an expense.
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Taking a loan in general is not a good idea. Just wait until you save the funds and then invest.