If I made Rs 10 lakhs as profit in trading in a year, What will be my tax liability?



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.


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.