Regarding tax on trading in share

415 views 6 replies

Hello, suppose one person earning 10 lakh in a year and paying their income tax as per tax slabs and supoose person start trading and earn 500000 lakh in a year as a ptofit then how tax calculation will be done.

Is 1500000 lakh count as a income and and tax accordingly

Or

We should to pay 15% of 500000 lakh as tax for trading and for 10 lakh as per income tax slab

Replies (6)
First you need to bifurcate

Equity Delivery, Equity Intraday, F & O.

Equity Delivery: Gains comes under capital gains ( 15% on short term and 10% on long term in excess of 1lac)

Equity Intraday trading: Speculative income : Tax as per slab rates

F & O : Normal business :Tax will be as per slab rates

Sir doing short term trading....mean to say they count 15 lakh as my income & tax accordingly

Equity Delivery or Intraday trading?
I think equity only
Tax will be 15% on 5Lacs under section 111A irrespective of your regular tax slab..

It's a special rate of 15% even though your income is above 10Lacs
OK accepted

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