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Tax paid for the income from share trading

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99 Points Posted on 20 October 2016

Dear Experts,

As per my knowledge, I assumed (!) the tax applicable for the income from Share Trading are 1. Long Term Capital Gain 2.Short Term Capital gain. But some of my friends informed that other than these two, Tax for the income earned from Speculative trading is different and it is 30%. (either intrady trading or BTST trading).

I would please be requested to clarify on the above three type of Incomes. Also please let me know once we have paid the short term capital gain tax, whether again we need to pay the IT for the same amount gained as per the total income?

I mean - my total income for the financial year is 6 lacs. Out of this 6 lacs, 3 lacs gain is through Short term and 1 lac through Intraday / BTST (50k each assume) and 2 lac long term capital gain. In this case what is the total tax to be paid?

Thanks

regards

Krishnan

Replies (1)

Rahul Shah

Assistant Chartered Accountant

142 Points Posted on 21 October 2016

on Long term Capital Gain is exempt u/s 10(38) if share transaction is done on Recognised Stock Exchange.Speculative and non-speculative business income has to be added to all your other income (salary, other business income, bank interest, rental income, and others), and taxes paid according to the tax slab you fall in..

In your example Rs 6 lac is your gross income so out of this amount Rs 250000/- is to be deducted. for short term capital gain you will have to pay flat 15 % on your Short term capital gain.