TAX COMPUTATION ON INTRADAY TRADING INCOME

dear friend

intra day trading is  speculative business income.

regards

tarun rustagi

HI Tarun,

I think by mistake u have mentioned it as "Non speculatice Income".

Intraday trading of shares/securities will be treated as Speculative Business Income...Its loss can only be set off against speculative income....further carry forward is allowed for 4 years...

Agree with Amir. It is speculative business as defined u/s 43(5) and not non speculation business income.

me to agree vth amir..

Ya Amir is Right.......

Agree with Amir

As per Sec 43(5),  transation in F & O segment (not for the sake of hedging) on which delivery is being not taken are in framwork of Speculation & in intraday as well no delivery is taken therefore it should also be covered in "Speculation transaction ".

Similar to the question asked, I've also been trying to find answer to whether intraday trading income should be considered as business income or stcg.

I read somewhere that in order to be a day trader tax wise you must do extensive trading (600 plus times), also got a reference of CBDT Circular4 2007 (maybe a obsolete reference now) stating that its on discretion of assessing officer to categories the income based on various factors.

So, If I have a intraday trading profit of 10000 and stcg of -15000 (with primary source of income as SALARY), should I be filling my return in ITR2 or ITR4?

sorry to all members and specially amir bhai.i am ready to accept that i was post a wrong reply above and amir bhai it is not by mistake.actually that time i was thinking about the derivatives and a confusion occures.i agree with all members it is speculative business. i modified my reply now.

thanks & regards

tarun rustagi

Originally posted by : Jyoti Verma
	As per Sec 43(5),  transation in F & O segment (not for the sake of hedging) on which delivery is being not taken are in framwork of Speculation & in intraday as well no delivery is taken therefore it should also be covered in "Speculation transaction ".

 This is the best answer. But the anwer of Amit with this answer will complete the query

Originally posted by : Shudhanshu Agrawal
	Originally posted by : Jyoti Verma As per Sec 43(5),  transation in F & O segment (not for the sake of hedging) on which delivery is being not taken are in framwork of Speculation & in intraday as well no delivery is taken therefore it should also be covered in "Speculation transaction ".  This is the best answer. But the anwer of Amit with this answer will complete the query

rightly said by shudhanshu agarwal

agree with my all friends...

But if you  doing trading daily and dont have any other business than it wont be considered as speculative income and u can treat it as a business income..... It have to be calculated on the basis of the the volume of transactions and the amount involved.... Even if its less transactions than it will be considered as sshort term capital gain and not speculative......

pls refer to this also:

/experts/audit-380765.asp

THANKS !
 DEAR FRIENDS.