How to File ITR for F&O and Intraday
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
Understanding Tax Categorization for Traders
With the July 31 ITR filing deadline approaching, it is vital to correctly report your stock market activities. The tax advisory desk at SP RESEARCHVIA PVT. LTD. outlines the critical differences in tax classifications.
How are F&O and Intraday trading profits taxed in India?
Intraday equity trading is classified as speculative business income and taxed at slab rates, while F&O trading is classified as non-speculative business income. Equity delivery investments qualify for capital gains taxation (STCG or LTCG).
Tax Audit and Expense Deductions
Traders categorized under business income can claim deductions on business expenses, including internet bills, subscription fees for charting tools, brokerage, advisory costs, and office rent. Keep proper books of accounts if your turnover exceeds SEBI/Income Tax limits.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
Statutory Warning & Risk Disclaimer: Investment in securities market is subject to market risks. Read all related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Content provided on this blog is for informational and educational purposes only.