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Income from speculative trade

132 views 1 replies

RAM K V

Others

27 Points Joined August 2015

Hello, I have taken VRS from my company two years back. Now I do not have any salary income. I do pay for the House loan EMI. I have small income from interests in saving bank accounts and dividend from long term share holding.

Recently I have started trading in stock exchange. This includes Stocks, futures and options both on intra day basis and holding for a longer time than one day. Based on this what ITR form I should fill? Also is there any difference as far as Tax law on intraday trade income/loss and short term gain/loss from stocks, futures and options? ( say selling after a week or month)

Kindly advise.

Replies (1)

Studentsca

CA Practice

3577 Points Joined September 2012

Income from intra day trading and speculative income is treated as income from business and profession. Income from short term and long term share trading is income from capital gains. Income from interest and dividend is treated as income from other sources. File form Itr 4 . Difference in tax treatment is as follows Tax on intra day trading is taxable at marginal rates. Tax on short term capital gain is chargable at 15%. Tax on long term capital gain from share trading is exempt.