FnOTax India
AY 2026-27 Scenario guide ITR-3

F&O expenses deduction list.

F&O traders often focus on turnover and forget that tax is paid on business profit after eligible expenses. A good expense schedule can prevent over-reporting income.

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Who this is for

Profile

You want to know which F&O-related costs can reduce business profit.

Filing position

ITR-3

Expenses reduce Schedule BP business income. They do not reduce F&O turnover.

Step-by-step workflow

Do this
  1. Pull broker ledger charges.
  2. Pull invoices for data/software/API/advisory.
  3. Allocate mixed-use costs reasonably.
  4. Exclude personal or investment-only costs.
  5. Keep support for every material expense line.

Common mistakes

Avoid

Subtracting expenses from turnover

Turnover and profit are different computations.

Claiming personal costs fully

Only business-use portion should be claimed.

No invoices

For non-broker costs, invoices or payment evidence matter.

Useful tools

Next action

Brokerage deduction guide

Open this FnOTax guide or calculator for the next step.

Turnover calculator

Open this FnOTax guide or calculator for the next step.

Audit checker

Open this FnOTax guide or calculator for the next step.

Loss set-off checker

Open this FnOTax guide or calculator for the next step.

ITR-3 vs ITR-4 checker

Open this FnOTax guide or calculator for the next step.

Frequently asked questions

Is STT deductible for F&O?
Yes, STT/CTT connected to F&O business is generally deductible.
Can I deduct TradingView or data feeds?
Yes, if directly used for F&O trading and supported by invoices/payment records.
Can I deduct home internet?
Only a reasonable business-use portion, not necessarily the full personal bill.