Tax QUery immediate

Taxation
1

Hi

I was told that If I’m a trader, then I will not be able to claim tax exemption on equity that I hold for 1year+
Is that true?

Can any professionals here confirm this?
@nithin any insights plz?

I read the Varsity but still wasn’t clear on this point.
Maybe I missed something?

2

True , tax exemption is for Investor .

3

If you are declaring your equity investments as a business/trader, then yeah you cannot. But you can declare your equity investments as capital gains, in which case you get exemption.

Check this chapter: https://zerodha.com/varsity/chapter/classifying-your-market-activity/

4

But if my derivatives trading & income is business income

Can I simultaneously claim long term cap gain for equity held for 1yr+?

I ask as a CA I know said that sometimes IT authorities argue that traders can’t be eligible for LTCG

5

You can show equity as capital gains and derivatives as business. If you can read through this: https://zerodha.com/varsity/chapter/classifying-your-market-activity/, I have also given link to the updated CBDT circular/order.

6

Thanks

And Pl introduce Trailing SL orders for carry over!