Deductible Trading Expenses: The Full Checklist (2026)
Note: This is general information, not tax advice, and tax rules change. Verify the current figures against the Income Tax Act, the relevant Finance Act and ICAI guidance, and confirm your own position with a qualified Chartered Accountant.
Why traders can deduct, and investors cannot
F&O is non-speculative business income, so the costs of running that business are deductible against it. A delivery investor reporting capital gains does not get this. The deductions below directly reduce the profit you pay slab tax on, so leaving them out means overpaying.
The statutory charges (auto from your statements)
These sit in your contract notes and Tax P&L, so they are the easiest to capture. See how rate changes flow through in STT and trading costs.
The business-use costs (you add these)
The depreciation point most traders miss
A laptop bought for trading is a business asset. You do not deduct the full cost in the year of purchase; you depreciate it at 40% on the reducing balance. A โน80,000 laptop gives a โน32,000 deduction in year one, then 40% of the remaining โน48,000 the next year, and so on. Confirm the current rate with your CA.
Capture them all in one place
Aktai Tax auto-pulls the statutory charges from your broker statements and lets you add the business-use costs with a depreciation helper, so your expense schedule is complete and your taxable profit is not overstated. Start by checking your turnover and net P&L with the turnover calculator, and read the full picture in income tax on F&O trading.
Frequently asked questions
What expenses can F&O traders deduct?
Brokerage, STT, exchange transaction charges, SEBI turnover fee, stamp duty, GST on brokerage, plus business-use costs like internet, data and software subscriptions, advisory fees, and depreciation on a computer or laptop used for trading. All reduce taxable business profit.
Can I claim my whole internet bill?
Only the business-use portion. If you use your internet connection half for trading and half personally, claim 50%. Apply a reasonable business-use percentage to shared costs and keep a note of the basis.
How does laptop depreciation work for traders?
A computer or laptop used for trading is a business asset, depreciated at 40% on the written-down-value basis. You deduct depreciation each year on the reducing balance, not the full cost in year one. Confirm the current rate and method with your CA.