Tax on Stock Market Profits: Intraday
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
Understanding Your Tax Liabilities
Many traders focus solely on gross profits and ignore the impact of direct taxes. Under Indian tax laws, profits from share trading are categorized differently depending on your holding period and execution style.
How is intraday trading profit taxed in India?
Intraday equity trading profits are classified as speculative business income. They are taxed as per your individual income tax slab rates, not at the flat capital gains rates. Speculative losses can only be offset against speculative profits.
Short-Term Capital Gains (STCG) Rules
If you buy and sell delivery shares within 12 months, the profits are categorized as STCG and are taxed at a flat rate (plus applicable surcharge and cess), regardless of your tax bracket.
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.