Short term gain tax on swing trading?

General
1

I am trading options intraday and doing swing trading (taking delivery of shares not more than 3-5 days)

I have to show options trading as business income , but can I take stcg @15% on my swing trading.
Is it allowed ?

I am have separate broker for swing trading of shares and another broker for options trading.

As stcg is 15 % on shares held upto 12 months. Income tax department has not specified any number of days.

Profit and gains from business will be charged normal slab’s (i.e 30% )
So i want my options trading to be taxed at 30% and swing trading to be taxed at 15%. Is it possible for me to take both the slabs.

2

Hi @md_imr

Although what you said can be done and in most of the cases, shouldn’t be an issue but in case, the trading activity is significant, there can be a dispute between IT dept and trader.

Check the below post by @Quicko on this topic.

And where there is ambiguity, it is always recommended to consult a CA to be on the safe side

3

Hey @md_imr,

Yes, the options trading can be reported under ‘Income from business and profession’ and income from Swing Trading can be reported as ‘Short Term Capital Gains’. However, the reporting also depends on the intention of trading. If the intention is of trading as a business, the same will be considered as business income, and in case the intention is capital appreciation, it’ll be considered as Capital gain.

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