Bank Charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2011 Can an Individual or HUF deduct Bank charges from Total Income while filing return ITR 1 & 2.
Thanks in Advance

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

25 January 2011 NO. Because these expenses are not related with their income. If the bank account is current account and the Individual/ HUF has business income the same can be allowed as deduction from total income.

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2011 What if the Individual is salaried and also engaged in Share tradings ? And can he deduct charges relating to demat & trading expenses?

Upgrade to CAclubindia Pro. Subscribe Now!

Ratan Sharma

Ratan Sharma (Expert)
Follow

25 January 2011 Yes he can deduct these expenses it these are related with the earning of income which is chargeable to tax except salary income.

Message likes : 1 times

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

26 January 2011 If engaged in share trading These charges are not deductible in case of LTCG & STCG. Only if it is treated as business income these charges are deductible.

Message likes : 1 times