I am a Trader and will be buying and selling the stocks every day. I have a capital of 1 lac. I will buy shares/options for 1 lac. Then I will square off all the positions in a week.
My overall capital is : 1 lac.
But my Buying and selling turnover will be approx: 2 lac. (Buying 1 lac, selling 1 lac)
If I do this continuously for 12 months on every trading day, my overall turn over may cross 5 crores(for example) or even more. But my overall capital is 1 lac only.
- Given this situation, when it comes to taxation, will I get any issue from Tax department. Will they send any IT notice.
- Whether SEBI will send any notice because I am doing this trading very often and not holding the positions for long.
FYI, I am investing from my Salaried income only. I am planning to do this full time may be after a year, hence I would like to understand the implications better.
Please provide your valuable thoughts.