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Since F&O is business income, expenses incurred wholly for trading can be deducted, such as brokerage, exchange charges, internet, advisory or software subscriptions and depreciation on a computer. STT paid on these trades is also allowed as a deduction against business income.
Sec 37 (now Sec 34); Sec 36(1)(xv), Income-tax Act 1961
If gross F&O profit is ₹5,00,000, brokerage and charges ₹40,000, internet share ₹12,000, advisory ₹30,000 and depreciation on a laptop ₹20,000, net income is ₹3,98,000. Keep bills and show only the business share of mixed use items. Personal expenses are not allowed.
The 2025 Act number for Sec 36(1)(xv) is not confirmed in our mapping; cite the 1961 section for past years.
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