Short Term Capital Gain on selling stocks

Taxation
1

I need a clarification on calculating STCG on selling stock.

1. Am I calculating STCG correctly in the below example?
2. STT charges must be excluded while buying and selling correct?(As said here https://zerodha.com/varsity/chapter/taxation-for-investors/)

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Brought 100 share at 150₹ buy price and sold them at 200₹. Holding period is 50 days.

other charges=Brokerage+Exchange+Stamp duty + Service tax //That means all charges other than STT charges
STCG = [(No of share) * Sell price - (other charges at sell time)] - [(No of share) * buy price + (other charges at buy time)]

Assume:
(other charges at sell time) = 25
(other charges at buy time) = 35

STCG = [100 * 200 - 25] - [100 * 150 + 35] = 5010

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2

Yes, this is the correct calculation if you declare yourself as an investor and declare your income as capital gains.

But if you declare yourself as a trader for business, then the expenses you can show add on. Mentioned in the screenshot below from Varsity:

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3

Rs5010 is correct ? Shouldnt it be 4940 .

4

I’m already doing a business other than investing. I can show internet/phone bills etc for it as an expense.

I’m want to declare myself as an investor for the capital gains over 1 year.

Also, I want to declare myself as a trader for the stocks I sold within 1 year. Is it possible?

5

Yes, you can claim all the expenses related to that particular business.

6

As per income tax notification, once you declare as trader and consider it as business income - you need to continue the same as well for future years.

Pls go through this circular…https://www.incometaxindia.gov.in/communications/circular/circular-no-6.pdf

It is suggested for you to have two different folios.

7

Do you mean 2 different folios in my name or with a different person?

8

Two different demat accounts in your name.
One for LTCG and one for STCG which you want to declare it as Business Income.

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