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Regarding tax on trading in share

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mayank gupta

3 Points Posted on 11 August 2023

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

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

Replies (6)

Quick Summary

This discussion clarifies how trading profits are taxed in the UK. It explains that equity delivery gains are treated as capital gains (15% short-term, 10% long-term over £100k). Intraday trading and Futures & Options are considered speculative or normal business income, taxed at your individual slab rate. Short-term equity delivery trades are taxed at a special 15% rate under Section 111A, regardless of your overall income.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 11 August 2023

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

mayank gupta

3 Points Posted on 11 August 2023

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

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 11 August 2023

Equity Delivery or Intraday trading?

Prof Suhasini

1732 Points Posted on 11 August 2023

I think equity only

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 11 August 2023

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