Intraday trading income can indeed be taxed under Section 44AD of the Income Tax Act, provided it's your sole business activity. To qualify, you must calculate your turnover by summing the absolute values of profits and losses from daily trades. You'll need to declare a minimum profit of 6% of this turnover, even if your actual trading resulted in a loss.
20 July 2020
If an Individual is trading in share as Intraday trading than can his income be taxed under 44AD?Intraday trading is only business he did during the year.please suggest.
19 December 2021
Turnover in the case of Intraday Trading is Absolute Turnover. Absolute Turnover is the Sum total of absolute profits minus losses made on daily transactions. Eligible for sec. 44AD of IT act. Declare minimum of 6% of turnover as profit from Intraday, even if the trader has loss in actual.