Re : Short capital gain on stocks trading

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This discussion clarifies the tax treatment of profits from stock trading for individuals with salary income. Short-term capital gains from intraday trading are classified as speculative business income, allowing for expense deductions. Delivery-based trading falls under capital gains, where expense claims are generally restricted. The impact of Securities Transaction Tax (STT) is also briefly touched upon.

praveen

praveen (Querist)

15 December 2021 Dear Expert,

A individual who is having salary income get the profit from stocks trading , short term capital gain.. his sales turnover (stocks) Rs.25,00,000.00 and purchase turnover(stocks) Rs.24,00,000.00 .. can he show this turnover and profit Rs.1,00,000.00 as professional income.

Kindly confirm

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

15 December 2021 No. Its not professional income. If Intraday trading, it comes under Speculative business income. If delivery based investment, declare it under Capital Gains.

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praveen

praveen (Querist)

15 December 2021 Sir, In that case can we claim the expenses to reduce the speculative business income profit..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

15 December 2021 Expenses related to the sell transactions can be deducted from the sell consideration.

praveen

praveen (Querist)

15 December 2021 Sir, Can we claim other related expenses like internet , power bill etc. which may incurred for online trading purpose

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)