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Share market intraday related query

deepak (PCS) (414 Points)

12 May 2021

If a person trading intraday or delivery base on listed shares, so query is that this income or loss comes under capital gain or business income??

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7 Replies

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 12 May 2021

Intraday, long term and in fact all trading activities fall under short term or long term capital gains.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 12 May 2021

It is income under capital gains

veerendar singh (tax consultant) (3301 Points)
Replied 12 May 2021

Intraday has to be taken as speculation business, while short/long term trading may be treated as business if you stand at a favourable position else, treat it as capital gains.

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 12 May 2021

Sry I’m a rookie at tax- income from intraday trading is either speculation gain or loss, which comes under the head of business income. It is added to the other incomes such as salary and taxed as per the marginal slab rate of the person.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 12 May 2021

Agreed

CMA Poornima Madhava (CMA) (13097 Points)
Replied 12 May 2021

Intraday trading is regarded as speculative business and hence taxable under PGBP. In case of delivery based transactions, if stock is held for >1 year, then LTCG/L. W.r.t. stock held for <=1 year, If frequency of such transactions are high then taxable as business income else STCG/L. This is debatable.

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 16 May 2021

@ CMA POORNIMA do you know any reason why this trading Not mentioned. Do the instruments behaviour change constantly? even if they change, there can’t be many scenarios. I meant does the transactions change? Another example is futures not recognised upon entering into contract immediately.