Income tax for day trading in stocks

Taxation
1

I understand If we day trade in stocks, it is considered as speculative income. Also, the profit gets added to our income and loss can be carried forward.

What I have also heard is that overall turnover of trading is also taxable.
Can someone please explain this aspect in detail with some examples?

Thanks for the kind help.

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2

These blog posts and videos by @Quicko should be helpful -

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3

Can anyone share book keeping sample for intraday trades.

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4

Will go through these. But, been tired of looking for the info on google and youtube. Almost all of them are very general articles aimed to making people visit the website for ad revenue or affiliate marketing.
I really appreciate if someone could give a direct answer to my question than more links !

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5

Hi @Neostar,

Long-term and Short term gains from trading in stocks are treated as Capital Gains.
However, if you do Intraday and F&O trades they are treated as Business Income.

  • Intraday Trading is considered a speculative business activity. Intraday Losses can be carried forward for 4 years.
  • F&O Trading is a non-speculative business activity. F&O Losses can be carried forward for 8 years.

Turnover is not taxable but is used to determine Tax Audit Applicability.

You can use this tool to determine if tax audit is applicable to you.

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