Hi all
Just wanted to understand that in intraday trading, I often receive a message from BSE/NSE at the end of the day showing a trade value (which is huge, often 10x of what I actually invested).
I am also using the leverage Zerodha offers so the invested amount becomes even bigger. I wanted to understand if we will get taxed on this trade value, or just the profit amount?
Ex. My traded value is 50lakhs but actual profit is 10k. Do I get taxed on 10k or 50lakhs?
tax is on profits. Trade value is irrelevant. Else no one would be trading …
Traded value is only for calculating the STT and other charges. You pay income tax only of the profit earned i.e. 10K in your case.
I assume this is referring to income-tax / capital-gains tax.
Does STT depend on traded-value?
(and even GST if one has a variable brokerage scheme that scales with traded value)
At these numbers, sounds like STT+GST might dominate capital-gains tax? 
yes as post above said, taxes are on transaction value.
With z, GST will be fixed on 20 per order. Others will scale with brokerage.
Intraday comes under business income, cg does not apply. yes STT is crazy high in stocks and now almost same in futures too. Its even more for overnight trading. Only for investors, its a tiny amount.
I am knew to this so being doubly sure.
On every trade, we incur STT/GST/ Brokerage. That is where trade value has a role. The more we trade, the higher the charges.
However, for profit (income tax), we remove these charges from the profit amount and that balance figure is what the tax slabs are applicable on correct?
You can deduct other charges like brokerage (except STT) from the profit while filing the income tax. You are also allowed to deduct expenses which are directly related to earning this income, e.g. rent of the premises used for the trading, mobile or telephone expenses, internet charges, broker’s commission, demat account charges (you will have to show the proof if IT department asks for it so don’t show fake deductions)
Yes, tax is as per your income tax slab.
Intraday profits are charged as business income, STT charges are also deducted.
There is no special tax rate.
So take all charges out, including STT, and whats left is taxed.