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4 Ways an Individual Can Save Taxes on Shares Trading Profits!

Expenses in business can be claimed.

Some of them are mentioned below.

·        Expenses on insurance: Insurance expenses can be claimed on assets used in business.

·        Expenditures on office requirements (fixed expenses, refreshments etc.) are all valid expenses.

·        Expenses on internet handling or mobile charges: If the business incurs expenses for mobile bills and internet charges, they are deductible.

·        Expenditure on fuel: Fuel bills for office vehicles are also tax deductible.

·        Expenses on staff salary: If you hire someone for research work or punch orders, you can claim those expenses. (Note- You can hire and pay a family member whose income is less than 5 lakhs, it is a tax-deductible expense)

·        Electricity expenses: You can claim electricity expenses if working at home. g Rental Expenses: If there is a rented office and it is a valid expense, you can claim it. (Note- rent receipts and rent agreement should be present)

Divide capital among your family members.

They should not be employed by other employers, as they will not be able to trade with the company's permission.

Thus, the tax bracket changes from 30% to 20%.

Carry Forwarding the Losses.

Loss can be carried forward for the next 8 years from the assessment year loss.

Short-term loss can be offset by long-term capital gain and short-term capital gain.

Long-term capital gains can only be set off against long-term capital gains.

Always set off a loss

This means that any loss incurred in trading can be offset against the income of any other business.

Regards

Santosh Patil

Founder

Alliance Tax Experts

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