iam doing intraday share trading how my tax will calculate if my only source of income is trading?
sir ,
Iam doing share trading intraday trade. and my only source of income is share trading no other income, for that i want to pay tax if i earn above my tax limit of rs 1.5 lakhs or any profit obtain from it i want to pay tax? pls explain
If your only income is from share trading and you do intra-day share trading, calculate your net profits at the end of the financial year. If the total profit earned is more than Rs. 1,50,000, you pay tax as per slab rates on the excess of profits over the first 1,50,000. For the next 1 lakh of profit earned you will have to pay tax @ 10%.
This will be treated as business income and short term gains tax has no place for intra day share trading profits.
Comments
if intraday is only source then its ur bussiness income and u have to pay 10% on ur profit…after all expences….
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Profit gained through Intra day trading is called as Short term capital gain that is profit earned from the investment with in one year. You need to pay 10% tax on your profit.
References :
Tax on short term capital gains from the sales of shares where you paid security transaction tax is 10% (for AY 2008-09) and 15% (for AY 2009-10) while there is no tax on long term capital gains. In such cases if you hold shares for more than a year, you have capital gain.
References :
http://mytaxes.in/index.php?topic=30.0
if you are doing only intraday trading, u have to pay short term gain tax on the profits, if they exceed the minimum taxable amount.
and u have to get the accounts audited by a CA.
References :
If your only income is from share trading and you do intra-day share trading, calculate your net profits at the end of the financial year. If the total profit earned is more than Rs. 1,50,000, you pay tax as per slab rates on the excess of profits over the first 1,50,000. For the next 1 lakh of profit earned you will have to pay tax @ 10%.
This will be treated as business income and short term gains tax has no place for intra day share trading profits.
References :
March 10th, 2010 at 3:53 am
business income.
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