4 Likes
Ananth,
Considering you have income only from trading
On total profit of Rs. 10 lakhs your total tax liability will be Rs.1,33,900
Here is the calculation
For an individual who is < 60 years slab rates are
| Income | Tax liability | |
| Exempt Income | 2,00,000 | 0 |
| Income chargeable at 10% | 3,00,000 | 30,000 |
| Income chargeable at 20% | 5,00,000 | 1,00,000 |
| Income chargeable at 30% | 0 | 0 |
| Total | 10,00,000 | 1,30,000 |
| Cess @ 3% of Income tax | 3,900 | |
| Total Tax Liability | 1,33,900 |
Note: Surcharge is applicable only if the taxable income is above Rs. 1 crore.
7 Likes
Thank you Roopa, but, could you elaborate the calculation.
Ananth, if you are an active trader, you can show all your expenses that you incur towards trading, like say datafeeds, tips, computer depreciation, broadband costs, and more, and reduce it from your gross trading profits, and pay taxes only on the net income. I think Roopa has been pretty elaborate in explaining you the exact tax amount.