{"id":5957,"date":"2023-06-30T18:13:23","date_gmt":"2023-06-30T18:13:23","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=5957"},"modified":"2024-03-30T13:58:05","modified_gmt":"2024-03-30T13:58:05","slug":"income-tax-on-intraday-share-trading","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/","title":{"rendered":"Income tax on Loss or Profit from Intraday share trading"},"content":{"rendered":"<h1><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5960\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/How-to-tax-on-Loss-or-Profit-from-Intraday-share-trading-Income..jpg\" alt=\"How to tax on Loss or Profit from Intraday share trading Income.\" width=\"1024\" height=\"533\" \/><\/h1>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e001ca4c027\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e001ca4c027\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/#How_to_tax_on_Loss_or_Profit_from_Intraday_share_trading_Income\" title=\"How to tax on Loss or Profit from Intraday share trading Income\">How to tax on Loss or Profit from Intraday share trading Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/#Intraday_Loss_or_profit_is_to_be_taxed_under_head_Business_Income_or_capital_gain\" title=\"Intraday Loss or profit is to be taxed under head Business Income or capital gain. \">Intraday Loss or profit is to be taxed under head Business Income or capital gain. <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/#Profit_from_Business_or_Profession_PGBP_Income\" title=\"Profit from Business or Profession (PGBP) Income\">Profit from Business or Profession (PGBP) Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/#capital_gain_Income\" title=\"capital gain Income.\">capital gain Income.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/#How_to_Computation_of_Trading_Activity_Profit\" title=\"How to Computation of Trading Activity Profit\">How to Computation of Trading Activity Profit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/#Income_Tax_Audit_Applicability\" title=\"Income Tax Audit Applicability\">Income Tax Audit Applicability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/#Capital_Gain_tax_rate\" title=\"Capital Gain tax rate\u00a0\">Capital Gain tax rate\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/#Intraday_trading_-Computation_of_Gross_Receipts\" title=\"Intraday trading -Computation of Gross Receipts\">Intraday trading -Computation of Gross Receipts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/#Set-off_CF_of_Loss_in_case_Intraday_Trading\" title=\"Set-off &amp; C\/F of Loss in case Intraday Trading\">Set-off &amp; C\/F of Loss in case Intraday Trading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/#Tax_rates_apply_on_Intraday_trading_income\" title=\"Tax rates apply on Intraday trading income. \">Tax rates apply on Intraday trading income. <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-on-intraday-share-trading\/#FAQ_on_F_O_or_Intraday_trading_income\" title=\"FAQ on F&amp;O or Intraday trading income\">FAQ on F&amp;O or Intraday trading income<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_to_tax_on_Loss_or_Profit_from_Intraday_share_trading_Income\"><\/span><span style=\"color: #000080;\">How to tax on Loss or Profit from Intraday share trading Income<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>This has become a lot more trading on the stock market, and investors aren&#8217;t just restricted to those who engage in active share trading. Income tax is applicable to all income in India. Similar to this, every gain or loss from sharing shares is subject to income tax.<\/li>\n<li>Shares can be traded either on an intraday basis or in different ways on the stock market. Shares must be squared off in intraday trading on the same day, whether at a loss or a profit. In any other case, shares may be kept for a short while up to several years.<\/li>\n<li>This article will instruct you on how to calculate income tax on profits or losses from intraday trading:<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Intraday_Loss_or_profit_is_to_be_taxed_under_head_Business_Income_or_capital_gain\"><\/span><strong><span style=\"color: #000080;\">Intraday Loss or profit is to be taxed under head Business Income or capital gain.<\/span> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>this is common question arises in mind of trader is whether profit or loss from intraday share trading is taxed as Capital gain or business income.<\/li>\n<li>For Above Objective, we required to check the nature of income taxed under both heads.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Profit_from_Business_or_Profession_PGBP_Income\"><\/span><span style=\"color: #000080;\"><strong>Profit from Business or Profession (PGBP) Income<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Income from carrying out regular business activity are taxed under the PGBP head. Profit or loss arising from trading in stock-in-trade is taxable under head business income<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"capital_gain_Income\"><\/span><span style=\"color: #000080;\"><strong>capital gain Income.<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>\u00a0\u201cCapital Asset\u201d includes any kind of property held by the assessee, whether the same is connected with his business or not. However, capital asset does not include Stock-in-trade, consumable stores, raw material held for the purpose of business or profession. (Section 2(14))<\/li>\n<li>Stock in trade are the assets which are purchases for purpose of resale on a regular basis. If an asset if purchase for the purpose of holding it for long term then same can\u2019t be classify as stock in trade.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Computation_of_Trading_Activity_Profit\"><\/span><strong><span style=\"color: #000080;\">How to Computation of Trading Activity Profit<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Income under business of Trading Activity is computing after deducting all expenses from revenue proceeds. In case of intraday trading, taxable income is Net Profit\/Loss reduced by all ancillary expenses incurred such as Security Transaction tax, Commission etc.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Income_Tax_Audit_Applicability\"><\/span><span style=\"color: #000080;\"><strong>Income Tax Audit Applicability<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Income Tax Assessee is needed to get his\u00a0Income Tax audit\u00a0completed, In Case Total gross receipts during the Last year more than Rs. 1 Cr. (Section 44AB of Income Tax Act)<\/li>\n<li>But, this Income threshold hold celling shall increased upto Rs. 10 Cr., In Case below requirements or conditions are fulfilled:<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Total of all received including received amount for turnover, sales or Total gross receipts during the Last year in cash does not more than 5 Percentage of Total receipts; &amp;<\/li>\n<li>Total of all payments amount made including incurred for expenditure, in cash, does not more than 5 Percentage of said payment amount,<\/li>\n<\/ul>\n<\/li>\n<li>If intra-day trading, no transaction is made in cash, so threshold limit\u00a0of Rs. 10 Cr shall Applicability<\/li>\n<li>But, In Case Total gross receipts of Income Tax Assessee does not more than Rs. 2 Cr. then Income Tax Assessee may chose -\u201dPresumptive Taxation\u201d i.e. Section-44A. and required to pay income tax on profits presumptive computed basis, not less than 6 percentage of Total gross receipts. In such a case, Income Tax Assessee is not liable for Income Tax audits.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Capital_Gain_tax_rate\"><\/span><span style=\"color: #000080;\"><strong>Capital Gain tax rate\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6877\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/Capital-Gain-Tax-rate-.jpg\" alt=\"Capital Gain Tax rate\" width=\"1016\" height=\"989\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/Capital-Gain-Tax-rate-.jpg 1016w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/Capital-Gain-Tax-rate--300x292.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/Capital-Gain-Tax-rate--768x748.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/Capital-Gain-Tax-rate--800x779.jpg 800w\" sizes=\"(max-width: 1016px) 100vw, 1016px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Intraday_trading_-Computation_of_Gross_Receipts\"><\/span><span style=\"color: #000080;\"><strong><a href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-itr-filing-for-fo-traders\/\">Intraday trading<\/a> -Computation of Gross Receipts<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>If intraday trading, turnover quantum, In case quite high as Intraday trader is needed to buy shares in specified lots.<\/li>\n<li>If intraday trading, Net position made in a day is considered for the computation of Total gross receipts. Both P &amp; Loss are to be taken \u00a0for the Gross receipts computation.<\/li>\n<li>For Example,<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Total Intraday trading Loss: Rs. 0.75 Cr<\/li>\n<li>Total-Intraday trading Profit: Rs. 1.55 Cr<\/li>\n<li>Total Gross receipt to check Income tax Audit applicability: Rs \u00a02.30 Cr (1.55 Cr+ 0.75 Cr)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5958\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O.1.jpg\" alt=\"f-O.1\" width=\"1280\" height=\"600\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O.1.jpg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O.1-300x141.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O.1-1024x480.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O.1-768x360.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O.1-800x375.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5959\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O..-2.jpg\" alt=\"f-O.. 2\" width=\"1280\" height=\"686\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O..-2.jpg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O..-2-300x161.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O..-2-1024x549.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O..-2-768x412.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/f-O..-2-800x429.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Set-off_CF_of_Loss_in_case_Intraday_Trading\"><\/span><span style=\"color: #000080;\"><strong>Set-off &amp; C\/F of Loss in case Intraday Trading<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Speculative business Loss can be carried forward for upcoming Four years subject to ITR filing with in the\u00a0Timeline date.<\/li>\n<li>So, Loss incurred from Intraday trading can be carried forward to the upcoming Four years only if ITR return is submitted with in Timeline date.<\/li>\n<li>Moreover, Speculative Business Loss can be Set-off only against Speculative Business income. So, intraday losses can be Set-off against speculative income only.<\/li>\n<li>But, if Income tax assessee Choose for a new tax Income tax regime, they cannot adjust them against business incomes or carry forward these losses.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6163\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/Loss-of-Share-market-.jpg\" alt=\"Loss of Share market\" width=\"1080\" height=\"329\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/Loss-of-Share-market-.jpg 1080w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/Loss-of-Share-market--300x91.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/Loss-of-Share-market--1024x312.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/Loss-of-Share-market--768x234.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/Loss-of-Share-market--800x244.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tax_rates_apply_on_Intraday_trading_income\"><\/span><span style=\"color: #000080;\"><strong>Tax rates apply on Intraday trading income. <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Intraday trading Income or Profit earned is added to other incomes of the Income tax assessee &amp; income tax will be payable as per normal Income tax slab rates <strong>apply<\/strong> to the Income tax assessee. His kind of intraday trading earning will not chargeable to any special Income tax rate.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"FAQ_on_F_O_or_Intraday_trading_income\"><\/span><span style=\"color: #000080;\"><strong>FAQ on F&amp;O or Intraday trading income<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5996\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/FO..jpg\" alt=\"Intraday trading income\" width=\"993\" height=\"611\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/FO..jpg 938w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/FO.-300x185.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/FO.-768x472.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/06\/FO.-800x492.jpg 800w\" sizes=\"(max-width: 993px) 100vw, 993px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How to tax on Loss or Profit from Intraday share trading Income This has become a lot more trading on the stock market, and investors aren&#8217;t just restricted to those who engage in active share trading. Income tax is applicable to all income in India. Similar to this, every gain or loss from sharing shares &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[142],"tags":[734,178],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/5957"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=5957"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/5957\/revisions"}],"predecessor-version":[{"id":6878,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/5957\/revisions\/6878"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=5957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=5957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=5957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}