Intraday F&O Taxation

Taxation
1

I am a salaried individual , my questions are regarding the taxation treatment of F&O intraday trades.

  1. Are F&O intraday day trades treated the same as equity intraday trades for taxation purposes ?

  2. For Tax Audit , the total turnover should exceed Rs 2 crore or Rs 3 crore as F&O intraday records are all digital ?

  3. Is there any dependency on which tax regime I need to choose (new or old) if I do intraday trading in F&O ? I believe the profits (if any) are taxed as per applicable tax rate of the regime the individual chooses (either new or old).

Thank you!

1 Like
2

@Quicko

3

Hi @Vpp,

Here are the answers to your queries.

  1. Any kind of F&O trades will be treated as non-speculative business, unlike Equity intraday which is treated as speculative.
  2. As 100% of the transactions in case of F&O trading are digital, the turnover limit for a tax audit is ₹10Cr.
  3. The tax rates will be applicable based on the regime that you go for. You can choose either of the regimes.

Hope this helps!

4

Thank you for your prompt and comprehensive response. Your help is greatly appreciated.