Intra Day trading and taxation
What Is Intraday Trading? Shares bought and sold (long trades) or sold and bought (short trades) within a single trading day is known as intraday trading. The trader’s purpose in intraday trading is not to own the equity shares, but they want to take advantage of the short-term price movements and make profits the very same day. These profits are taxable. There is no separate speculative income tax rate in India as it is taxed according to your income tax slab. Speculative Business Income: Intraday transactions are speculative in nature, and hence, the income from these trades is called speculative business income. Income tax on intraday trading profit in India falls under this category. Income Tax Rules On Intraday Trading – Income Head, ITR Form And Due Date Income Head: Profits and Gains from Business and Profession. Your income from intra-day trading will be considered as speculative business income . It is consider...