Share trading is my only source of income. So in tax Do I show Capital gain (1yr+) under LTGC or under business income

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  1. Share trading is my only source of income.

So in tax Do I show Capital gain (holding for 1 year +) under LTGC or under business income.

  1. Also for STGC tax is 15%, so can I show delivery based short term gain as business income.

  2. Another important one, say my profit - LTGC is 2 Lac & deliver based gain - 1 Lac & FNO - 1 Lac.

Total profit 3 Lac, so do I have to pay tax OR

LTGC is tax excempt, now total taxable profit is 2 Lac, as per tax slab no tax.

Plase try to answer for all three

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Check out this module: http://zerodha.com/varsity/module/markets-and-taxation/, the answer is not straight forward

  1. You can show it either as LTCG or Business, but based on your frequency of trading, If it is higher, it is best to show as business income.

  2. Yes if your trading volume is higher, STCG can be shown as business income.

  3. Yep, LTCG is exempt, if you show business income as 2lks, then yes no tax to be paid.

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M a student 21 years old…m planning to invest in equity thru zerodha.if my profit from share is less than 2.5lakh annually…even though my turnover may exceed 4-5 lakhs.do I need to pay income tax?I have heard that we have to pay 10% of our income as tax. ITR4…I have no other income…