Intra-day trade profit -st capital gain or business income?

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This query is : Resolved

rl334709 (Querist)

09 June 2018 SIR,
Please, share your opinion on following :

An individual has pension income as his main income source.
He has interest income from bank savings a/c, interest from bank FDs, and from PPF a/c also.

In addition, He has done intra-day trading in share market, in FY 2017-18.
He has done intra-day Buy of Rs. 6,86,400 and Intra-day Sell of Rs. 6,90,100.

From this, he has made total Intra-day profit of Rs. 4,800 and total Intra-day loss of Rs. 1,100, in FY 2017-18.
Final intra-day profit is (4800-1100) = 3,700.

His total income from pension, interest and some other small sources (without adding income or loss of share trading), is Rs.4,90,000.

Questions :

(1) How this final intra-day trading profit to be treated for taxation ?
Should it be taken as short term capital gain, or, as business income ?
Can intra-day loss be deducted from intra-day profit ?

(2) Which ITR form to be used to show this intra-day profit?

(3) And where to show it in income tax return ? Under which head ?

(4) He has done a small delivery based trading also. Delivery based buy of Rs. 6,098. And sell of Rs. 6,000.
Final loss from delivery based buy and sell is (6000-6098) = Rs. (- 98).

How to treat this loss of delivery based share trading ?
Can it be deducted from final intra-day profit ?

Please, give your guidance.
Thanks.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

09 June 2018 1) Any income or loss arising from intra-day trade in stocks is ‘speculative business
income’

4) It is normal 'business loss'. Not permitted to deduct form intra-day loss.

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