Taxation of intraday trading in stock market

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Prateek Jain

Prateek Jain (Querist)
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02 July 2012 what is the tax treatment of intraday trading in stock market

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 July 2012 1. Intraday trading is a NON SPECULATIVE business.

2. Accordingly profit/loss shall be computed normally.

3. STT paid shall be allowed as deduction.

Kumar

Kumar (Expert)
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03 July 2012

Delivery is not involved in the Intra day transactions, is it still non-speculative

Can you please clarify the basis for it being non speculative

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 July 2012 Oh sorry. Meant to write it is SPECULATIVE business.

1. As per Section 43 of the Income Tax Act, it is a speculative business.

2. The income will be computed normally.

3. STT paid shall be allowed as deduction.

4. Loss, if any can be set off only against another speculative business.

5. Loss which is not set off can be carried forward for 4 Assessment Years and can be set off only against speculative business.