Income tax on share trading


I am trading in eqiuty and i am intraday+short term+ long term  trader. How can i calculate my tax liability! and what other income rax rules i should follow !

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It's better to consult a tax practitioner as you can't handle everything.

Still if you want to calculate it yourself,
1. Track your purchases and sales for short term holdings
2. No need to care about long term holdings as they're exempt.
3. Intra day trading is considered speculative and taxed separately. You may need to get your accounts audited.
4. Dividends exempt

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Totally agree with mr. manjunath rampure sir.

As you are a trader hence ur intra day trading is considered as speculative income and will be taxable as business income, as per the guidenece note of ICAI ,"turnover" is "Net" of all postive and negative incomes from various transaction and not total of all Sales transaction. So, if your net income doesn't exceed Rs.1 Crore, you are not liable to tax audit.

Agri and business

  I have a confusion , as mentioned above intra day trading ( with minimum margin) is termed as speculative  business income   on the other hand trading in  F & O ( with same  minimum margin ) is NOT TERMED as speculative  business income  , what is real  scenario , as far as SPECULATIVE BUSINESS INCOME is concerned



Dear Dahale,

F&O market is a place to safeguard yourself from market risks. Though there is no actual delivery of goods, idea is that you'll square off your position and buy the commodity in open market. So, they are excluded from considering as speculative even if there is no actual delivery of goods.

But in case of shares, the things are different.

Hope it helps

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Financial Adviser

In case of profit on equity shares sold on stock exchanges in India held for less than 12 months are s taxed at a flat rate of 15 percent. It is also interesting to note that even in cases where the applicable slab tax rate is 10 percent, you will still have to pay tax of 15 percent on such short- term capital gains



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