Profits and Expenses

[Quicko]

@Rajat2805,

As per the IT Act, you cannot claim the cost of the asset as an expense. However, you can claim the depreciation on the asset as an expense. For example, You have purchased a high-end computer for INR 10 lakhs. The depreciation rate is 60%. Hence, you can claim INR 6 lakhs as depreciation in the 1st year (10,00,000*60%). And can carry forward the remaining amount to next year.

Expenses a Trader Can Claim in ITR - Learn by Quicko

@Rajat2805

• Home broadband charges
• Mobile Phone data expenses

@Quicko

Any expense incurred for trading can be claimed as a valid business expense in P&L Account if trading is considered as a Business Income. However, the Income Tax Act does not allow claiming an expense paid in the form of penalty. Any expense charged by the broker in the form of a penalty cannot be claimed as a business expense.