Daily Trading in Share Market

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CA. Rishabh Mittal (Querist)

12 May 2009 Hi, What is the treatment under Income Tax Act, 1961 for Income on daily trading in Stock Market? Is it to be considered as Income from speculative business? Also, what would be the treatment of STT paid on stock market transactions?

Thanks in advance

chetan soni

chetan soni (Expert)

13 May 2009 Yes, the income will be treated as speculative income under the head profit & gains from business & profession in income tax return.

And for STT paid if you are broker then you can claim this expenditure against your income. In other case you can claim rebate u/s 88E. But you need to satisfy following conditions:

01. Taxpayer should be Individual or HUF
02. Income should include any income u/s Profit & gains from business & profession
03. Needs to submit form 10DB for STT paid on transactions for Recognised stock exchange & form 10DC for transactions of sale of Mutual fund.

CA. Rishabh Mittal

CA. Rishabh Mittal (Querist)

13 May 2009 Thanks Chetan,

Can you please support your answers with sections in Income Tax Act,1961 (Specially for "for STT paid if you are broker then you can claim this expenditure against your income") as this was the latest amendment in Income tax.

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