Brokerage deduction calculator.
Many F&O traders overpay tax by reporting net broker P&L incorrectly or missing charges that are deductible under the business head. The expense schedule should be reconciled from the broker ledger, not guessed.
How to calculate
Method- Start with realised F&O business profit/loss.
- List broker charges: brokerage, STT/CTT, exchange, SEBI, stamp, GST.
- Add direct trading expenses: data, software, API, advisory, interest where supported.
- Do not subtract expenses from turnover; subtract them from business income in Schedule BP.
Inputs to collect
Before you startBrokerage
Use broker reports, ledgers, contract notes, or invoices as support.
STT/CTT
Use broker reports, ledgers, contract notes, or invoices as support.
Exchange charges
Use broker reports, ledgers, contract notes, or invoices as support.
SEBI charges
Use broker reports, ledgers, contract notes, or invoices as support.
Stamp duty
Use broker reports, ledgers, contract notes, or invoices as support.
GST
Use broker reports, ledgers, contract notes, or invoices as support.
Data/software/API costs
Use broker reports, ledgers, contract notes, or invoices as support.
Trading-related interest
Use broker reports, ledgers, contract notes, or invoices as support.
Common mistakes
Avoid theseExpenses are not turnover reductions
Turnover is for audit testing. Expenses belong in profit computation.
Personal expenses are not deductible
Only costs with direct trading-business nexus should be claimed.
Ledger beats memory
Use broker ledger and invoices rather than estimating charges manually.
Frequently asked questions
- Is STT deductible for F&O?
- Yes. STT/CTT connected to F&O business is generally deductible as a business expense.
- Can I deduct internet and laptop costs?
- Only the business-use portion with reasonable support. Avoid claiming personal-use portions.
- Do charges reduce turnover?
- No. Charges reduce taxable business income, not F&O turnover.
Run the live checker.
This page explains the method. The linked tool performs the working.
Read F&O tax guideKnow the source logic.
FnOTax pages separate official-source rules from broker-report assumptions.
How we verify