Taxpayers can claim all the expenses incurred wholly and exclusively in relation to their business/profession under the regular scheme of taxation.
Expenses like professional fees, consultancy expenses, accounting/audit fees, utility expenses (light/internet expenses for trading), salary expenses, and rent expenses can be deducted from gross profits to arrive at taxable income.
To add Business Expenses on Quicko
- Navigate to Filing > INCOMES > BUSINESS & PROFESSION from the side nav
- Click on Regular Business Income
- Enter the Business Details
- Name
- Description
- Nature & Category of the Business
- Enter Income Details
- Click on Save
- Next, select the business
- Navigate to Expenses
- Click on Add
- Select expense head/subhead
- Enter the expense Amount
- Click on Save
To add Profession Expenses on Quicko
- Navigate to Filing > INCOMES > BUSINESS & PROFESSION from the side nav
- Click on Regular Profession Income
- Enter the Profession Details
- Name
- Description
- Nature & Category of the Profession
- Enter the Income Details
- Click on Save
- Select the Profession
- Navigate to Expenses
- Click on Add
- Select expense head/subhead
- Enter expense Amount
- Click on Save
Speculative vs Non-speculative Business-Related Expenses
Any expenses related to a speculative business activity such as Intraday trading shall be reported as expenses related to a speculative business income.
All the other expenses can be reported as expenses related to non-speculative business income (such as F&O trading, regular business such as manufacturing or trading of goods & services)