Expenses a Traders Can Claim in ITR

Deductible Expenses: Traders can claim various expenses like rent, insurance, repairs, office supplies, and legal fees. Tax Deductible Levies: STT, Stamp Duty, and CTT paid during trading activities are deductible if income is reported as business income.

Input GST: Input GST can be deducted if the trader is not GST registered, but it can offset Output GST for registered traders. Non-Deductible Expenses: Personal expenses, fines, penalties, taxes, cash payments exceeding INR 10,000, and undeposited TDS are not deductible.

Invoice Documentation: Ensure invoices are issued in the trader's name within the financial year and retain payment proofs for audits. Cash Payment Caution: Avoid cash payments exceeding INR 10,000 and opt for non-cash methods to track expenses effectively.

Presumptive Scheme: Traders under section 44AD cannot claim expenses, but they're exempt from maintaining books of accounts. Capital Gains Expenses: Expenses incurred during the sale of shares, like brokerage and stamp duty, are deductible solely for calculating Capital Gains.