How to Report Expenses related to Trading?

How to Report Expenses related to Trading?

When you connect an app under Business & Profession, your trading expenses such as brokerage, STT, GST, and more are fetched automatically. Here’s where to find them and how to add additional expenses if needed.

Understanding Direct vs. Indirect Expenses

  • Direct expenses: Costs that are directly related to earning your business income. These are tied to your core activity and vary with it (e.g., brokerage, transaction charges, or other trading-related fees).
  • Indirect expenses: Costs that support your business but are not linked to any single trade or transaction. These are more general in nature (e.g., internet, rent, electricity, office supplies).
Web
Mobile
Web

Where Trading Expenses Appear

Adding Direct Expenses

Trading expenses are treated as direct expenses and are fetched along with your trading income. To view them:

  1. Go to File > Business & Profession
  2. Select your business account → Incomes
  3. Open either Intraday or F&O income

You’ll see a Direct Expenses field—this is the total of all trading expenses fetched from your broker.

Adding Indirect Expenses

  1. Go to File > Business & Profession
  2. Select your business account → Expenses
  3. Click on Add> enter all the expense details and save
Mobile

Where Trading Expenses Appear

Adding Direct Expenses

Trading expenses are treated as direct expenses and are fetched along with your trading income. To view them:

  1. Go to File > Business & Profession
  2. Select your business account → Incomes
  3. Open either Intraday or F&O income

You’ll see a Direct Expenses field—this is the total of all trading expenses fetched from your broker.

Adding Indirect Expenses

  1. Go to File > Business & Profession
  2. Select your business account → Expenses
  3. Click on Add> enter all the expense details and save

Need Help?

Raise a ticket and our support team will assist you.

    • Related Articles

    • Expenses which can claimed against Capital Gains

      When you sell an asset like property or securities, you can reduce your taxable capital gains by claiming certain expenses. These are costs directly related to the transfer or improvement of the asset. Important Note: You can only claim these ...

    • Import Trades & Report Business Income using Investment Apps

      If you're trading in Intraday or Futures & Options (F&O), it's important to know that these are treated as business income under the Income Tax Act and must be reported under the Business & Profession (B&P) category. ⚠️ Since Intraday and F&O are ...

    • Add Direct and Indirect Expenses for Business

      Adding business expenses accurately is essential for reducing your taxable income and ensuring correct profit reporting under the Income from Business & Profession head. What are Direct and Indirect Expenses? Direct Expenses These are costs directly ...

    • Report Scripwise trades for adding Capital Gains

      Scripwise reporting allows you to consolidate all trades of a single security (scrip)—even if they were made on different dates—and report them as a single entry. The total gains or losses are calculated using the weighted average of buy/sell prices, ...

    • Report Form-10IA details in Tax Return

      If you or your dependent has a specified disability like autism, cerebral palsy, or multiple disabilities, you may be eligible for a flat deduction under Section 80U or 80DD. To claim it, you’ll need to file Form 10-IA as proof. This form must be ...