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Tax on Share Trading

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SANYAM JAIN

32 Points Posted on 25 April 2020

If I enters into delivery trading and sale the shares within 5-10 days and do this process again and again.

Should I have to offer profit of 8% on my total sale value of shares ?

PS: Margin in share trading is barely 2-3%.

Replies (3)

Quick Summary

This discussion clarifies the tax implications of frequent share trading in the UK. It explains that selling shares held for more than a day, even if frequently, results in short-term capital gains or losses, not speculative business income. Therefore, the 8% profit rule typically doesn't apply in this scenario. The correct tax treatment depends on whether the trading is classified as business income or capital gains, with different tax rates applying to each.

P-SAC

Partner

100 Points Posted on 25 April 2020

Dear Sir,

To decide the correct head for taxation, we first need to decide whether this us your business income or capital gain.

Based on the same, we can decide the taxation rates.

For more information kindly drop email to psandac @ gmail.com

sabyasachi mukherjee

Profession

19978 Points Posted on 25 April 2020

@ sanyam

nature of trading is pertinent.

SUSHANT KUMAR

Employed

191 Points Posted on 27 April 2020

No, any trading of shares for delivery basis say holding period more than 1 day, then gain or loss arises on trading shall be treated as short term capital gain or short term capital loss. In ur case it is not speculation business, hence required 8% pft not applicable. For further queries kindly mail me at sushant1655 @ gmail.com.