Income tax on stocks delivered

If I buy delivery based stocks on Monday and sell on Friday, on same week, how is the tax calculated for this profit? Flat 15% on profit or some other rules applicable here?

Replies (6)

Yes, usually it is taken as short term capital gain, but depends upon frequency of transactions and the intention of the assessee......

Dear Sir,

In case the assessee is new for stock Trading then how is it treat as STCG...

Thank you @ dhirajlal sir. When you say it depends on the frequency, is there any guideline that says one should not have done more than certain transactions to come under 15% bracket? Or is it upto the assessement officer?

And if I plan to do this for year-long, say very frequently like once in a week, should I have to pay 30% on profit? This is my concern now, whether I should pay 15% or 30% on profits I make by taking deliveries and selling back within a week or two..

Thanks for your help sir..

As such there is no specific rule, but recently there was a notification in this regards, where by the assesse has been given authority to choose any specific mode for declaration of head of such delivery based transactions i.e. CG or business income....... which if be as per mode declared in previous years......  the AO should accept the same.

Thanks a lot sir, you are very helpful!

My Pleasure........

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