Yes, brokerage and transaction charges incurred during Futures and Options (F&O) trading are deductible as business expenses when calculating the income from F&O trading, which is treated as business income under the Income Tax Act of India.

Here's a breakdown of the deductibility:

1. Brokerage Charges: These are directly related to your F&O trading activities and are allowed as a deduction from the income generated through F&O trades.

2. Transaction Charges: Charges levied by stock exchanges, such as Securities Transaction Tax (STT), Stamp Duty, and other regulatory fees, are also deductible, except for STT, which is not deductible as per Section 40(a)(ib) of the Income Tax Act.

Other allowable deductions include:

- Internet and telephone expenses

- Depreciation on assets used for the trading business

- Salaries paid to employees (if any)

- Any other expense directly attributable to F&O trading.

Keep accurate records of these expenses to claim them while filing taxes under the "Income from Business or Profession" head.