SLBM income - stock market (SLBM - Securities Lending and Borrowing)

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Income earned from Securities Lending and Borrowing (SLBM) is generally taxed under 'Income from Other Sources' for individual investors who aren't actively trading securities as a business. If securities trading is your main business, it can be classified as 'Business Income'. In both cases, the income is taxed at your applicable income tax slab rate.

Pratik Patel

Pratik Patel (Querist)
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12 August 2025 Dear Sir/Madam,

If client has earned income form SLBM - Securities Lending and Borrowing then under which income head it is taxable ? and at what rate of tax?

Thanks and Regards,

Pratik N Patel

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 August 2025 Such income is taxed under “Income from Other Sources”, if the client is not trading in shares as a business. This applies to most individual investors.
Alternatively, if the client is in the business of trading securities, it can be treated as “Business Income”.
The income is taxed at the applicable slab rate as per the total income of the individual.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 September 2025 Good luck....

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