ITR Filing 2026: What Business Expenses Can You Claim for Stock Market Income?
NewsbusinesstaxITR Filing 2026: What Business Expenses Can You Claim for Stock Market Income?Last Updated:August 10, 2026, 09:02 ISTIf you trade in F&O or undertake intraday equity trading as business,. . .
NewsbusinesstaxITR Filing 2026: What Business Expenses Can You Claim for Stock Market Income?Last Updated:August 10, 2026, 09:02 ISTIf you trade in F&O or undertake intraday equity trading as business, income is generally treated as business income. It allows deduction of expenses related to earning the income. Rapid ReadRapid ReadSummarized by AI. +ITR filing by Aug 31, 2026; Oct 31 for tax audit. F&O, intraday trading income is treated as business. Claim brokerage, internet, software, office expenses. ITR Filing 2026. Taxpayers earning income from stock market trading have time till August 31, 2026, to file their income tax returns (ITR) if they have business income and are not liable for a tax audit. Those whose accounts are subject to a tax audit have until October 31, 2026. The timelines apply to taxpayers filing returns like ITR-3 and ITR-4 with business or professional income, including many futures & options (F&O) and intraday traders. One of the biggest questions among traders during ITR filing season is: What business expenses can be claimed to reduce taxable income? The answer depends on how your stock market income is taxed. Recommended StoriesAmazon Great Freedom Sale 2026: Best Deals On Vacuum Cleaners With Up To 55% DiscountKerala Lottery Result Today Live: Bhagyathara BT-66 Winning Numbers For August 10, 2026; First Prize Rs 1 CroreAtiq Ahmed's Son Abaan Dead, Umar's Convoy Skips Toll — Tries Running Over StaffThe Spotlight | Mayurakshi Das Decodes LinkedIn’s New AI Slop Reporting Tool | The Breakfast ClubNot all stock market income is treated the same under the Income Tax Act, 1961. If you earn from delivery-based investing, where shares are held as investments, the gains are generally taxed as capital gains. In such cases, you cannot claim routine business expenses such as internet bills or laptop costs against capital gains. However, if you trade in F&O or undertake intraday equity trading as a business, the income is generally treated as business income. F&O trading is considered a non-speculative business, while intraday equity trading is treated as speculative business. Taxpayers reporting such income can claim eligible business expenses that are incurred wholly and exclusively for carrying on the trading activity. What business expenses can traders claim?The Income Tax Act allows deduction of expenses that are directly related to earning business income. The key requirement is that the expense should be genuine, supported by records wherever possible, and incurred for the purpose of trading. Here are some common deductions:Brokerage and transaction charges:Brokerage paid to brokers, exchange transaction charges, clearing charges and other trading-related costs are among the most common deductible expenses. These are directly linked to executing trades. Internet and mobile bills:A reliable internet connection is essential for online trading. Internet charges and mobile bills can be claimed to the extent they are used for trading activities. If the connection is also used for personal purposes, only the business-use portion should be claimed. Laptop or computer:A laptop, desktop or tablet purchased for trading can qualify as a business asset. Instead of claiming the full purchase price in one year, taxpayers generally claim depreciation as per the applicable income tax rules. Software and trading tools:Expenses on charting software, trading terminals, market data feeds, analytics platforms and research subscriptions used for trading can generally be claimed as business expenses. Office expenses:If you maintain a dedicated office or workspace for trading, expenses such as office rent, electricity, stationery and office maintenance may be eligible deductions. Those working from home may claim only the reasonable business-use portion of certain expenses where appropriate. Professional fees:Fees paid to chartered accountants, tax consultants or legal professionals in connection with maintaining books, tax compliance or trading business can generally be claimed. Bank charges:Bank charges directly related to trading activities, such as account maintenance charges for business accounts or payment gateway charges, may also qualify. Depreciation on office equipment:Apart from computers, depreciation may also be available on eligible office furniture, printers and other equipment used for the trading business, subject to tax rules. Can you claim electricity or rent?Yes, but only if there is a genuine business use. For example, if you trade from a room in your house that also serves personal purposes, claiming the entire electricity bill or house rent may not be justified. Only a reasonable proportion attributable to business use should be claimed. What expenses cannot be claimed?Many taxpayers wrongly assume that every expense can be deducted. Personal expenses are not allowed. Examples include household grocery expenses, family travel or vacations, personal entertainment expenses, clothing for personal use, medical expenses unrelated to business, personal food bills, and expenses without any business purpose. Similarly, expenses that cannot be supported by bills or reasonable evidence may be questioned during assessment. Keep proper recordsTax experts advise traders to maintain proper documentation of all expenses claimed. These may include broker statements, GST invoices where applicable, internet and mobile bills, software subscription invoices, bank statements, laptop or equipment purchase bills, and rent agreements (if claiming office rent). Maintaining records makes it easier to substantiate deductions if the Income Tax Department seeks clarification later. Choose the correct ITR formMost individuals reporting business income from trading generally file ITR-3, while eligible taxpayers opting for the presumptive taxation scheme may file ITR-4, subject to the conditions prescribed under the Income Tax Act. Selecting the correct form is important because filing the wrong ITR can lead to defects or delays in processing. News18 NewsletterHandpicked stories, in your inboxA newsletter with the best of our journalismAbout the AuthorBusiness DeskA team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, w. . . Read MoreLocation :First Published:August 10, 2026, 09:02 ISTDisclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to ourTerms of UseandPrivacy Policy. Loading comments. . . Read More