Filling of Income tax for Trading

#1
Hello Guys,

I work for corporate firm and i got my form16. i do trading also.
do we need to mention these trading details also while filing Tax? I am not sure as we already paying tax while doing trading in terms of STT.
any procedure?

Thanks.
 

hitesh

Active Member
#2
Hello Guys,

I work for corporate firm and i got my form16. i do trading also.
do we need to mention these trading details also while filing Tax? I am not sure as we already paying tax while doing trading in terms of STT.
any procedure?

Thanks.
Yes, you need to mention profit from trading in your income tax return. STT is deductible expense.

You need to show your income or loss after appropriately breaking it as follows in case of profit from EQUITY SEGMENT:-

1. Long term capital gain : when shares are sold after holding it for more than one year. (Taxability is NIL on such profits).
2. Short term capital gain:- when shares are sold within one year from the date of purchase, its short term gain / loss. (Taxability is 15% on such profits).
3. Speculative Profit/Loss: Profit/Loss arising out of intraday trading. (Tax as per your income slab)
4. Business Profit: If you trade frequently and volume is more than profit/loss may be shown as a profit from business. (Tax as per your income slab).

With regards to DERIVATIVE SEGMENT (Future & Options), the profit/loss would be considered as a business profit / loss.(Tax as per your income slab).

for more details please visit and gothrough:
http://www.traderji.com/taxation-ma...-tax-related-quieries-i-would-get-solved.html

http://www.traderji.com/taxation-matters/45808-income-tax-money-earned-stock-market.html

For more info, just google "Tax on share trading in India"
 

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