Tax QUery immediate


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?

True , tax exemption is for Investor .

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:

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

You can show equity as capital gains and derivatives as business. If you can read through this:, I have also given link to the updated CBDT circular/order.


And Pl introduce Trailing SL orders for carry over!