EQUITY SHARE INTRADAY IS BUSINESS PROFIT OR CAPITAL GAIN

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This query is : Resolved

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This discussion explores whether intraday equity share trading constitutes a business profit or a capital gain. The consensus suggests that intraday trading is considered speculative business. Therefore, losses from such trading cannot be set off against other income sources like professional income but can be carried forward. Additionally, if the trading activity is deemed a business, a tax audit may be applicable, even if profits are below certain thresholds.

sachin sadashiv more

sachin sadashiv more (Querist)
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27 March 2020 I AM TRADING IN EQUITY SHARE FOR FY 19-20. I AM NOT TRADING FOR INVESTMENT PURPOSE.
IN THIS YEAR I AM PURCHEASE @RS.6724913/- SHARES & SALES @RS.6580129/- TOTAL LOSS IS @RS.144784/- & MY PROFESSIONAL INCOME IS 584000/-
1-CAN I SET OFF SHARE LOSS IN MY PROFESSIONAL INCOME - BECAUSE I AM TRADING ONLY
2- IF SHARE TRADING IS BUSINESS THAT TIME TAX AUDIT IS APPLICABLE BECAUSE TRADING PROFIT IS BELOW 8&

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 March 2020 1 Intra day trading is speculative so set off not possible with other sources. Can be carried forward and set off against such income.
2 It's business income hence tax audit applicable.