Taxation for intraday trading in US stocks

Taxation
1

Hi,

I am an Indian tax resident. I have done multiple intraday trades in US stocks where I entered and exited the trade on the same day.

1)For frequent intraday trading in Indian stocks, Indian tax residents need to show it as Business Income and not Capital Gains. But for frequent intraday trading in US stocks for Indian tax residents, is it Business Income or Capital Gains? Which Schedule in ITR would be relevant to this? Schedule BP or Schedule CG?

2)What is it if the trades last for a few days and delivery happens ? The frequency of trades is still high.

@Quicko - can you throw some light on this?

2

Hey @ishchat

If US stocks are bought and sold on the same day without actual delivery, the income is generally treated as speculative business income. If there is actual delivery/settlement, the treatment may differ and it may be treated as capital gains.

3

Forget tax, are you even allowed to do this? This itself is grey area.
RBI LRS scheme categorically mentions permissible activities

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and most experts believe that intraday or any other kind of trading does not qualify under overseas portfolio investment.

I would suggest get a professional opinion from a qualified CA.

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