Share trading activity as Business income

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AMAR GANDHI (Querist)
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01 March 2025 I was earlier filing share trading activities as STCG or LTCG earlier as applicable. But since last two years I am doing share trading as full time activity and have frequent transactions (Intraday/FnO/cash positional/long term). As per my knowledge. I have to show FnO trading as Business income. But Can I show my cash trading activities as Business income and not as STCG/LTCG. ( since I can claim expenses if I show as Business income and as individual tax payer, I have to pay tax as per individual tax slab) I have read somewhere that if I shown cash segment trading as STCG/LTCG earlier, I cannot change it to Business income. Please guide

Nikhil Kaushik

Nikhil Kaushik (Expert)
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01 March 2025 you can change it. But remember that STCG and LTCG are taxed at a lower rate. So, it may not be that beneficial in the long term to change your tax position in this case.

AMAR GANDHI

AMAR GANDHI (Querist)
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01 March 2025 Thanks for the response Nikhil. But if I show share trading as Business income, can't I claim expenses (mobile bill/internet/electricity, STT, etc. ) and reduce my tax obligation? For eg. even if my net income is Rs. 10 Lacs, I have to pay STCG on Rs. 7 lacs i e. Rs. 1.4 lacs STCG @ 20% while if I show it as business income, I can show some expenses and reduce my net taxable income. Please suggest. Thanks

AMAR GANDHI

AMAR GANDHI (Querist)
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Nikhil Kaushik

Nikhil Kaushik (Expert)
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01 March 2025 well that is a decision for you to take. there are not many expenses when you consider the overall impact if you scale up your activities.

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