Day Trading as a Business

Hello,


I have recently rented a room(5.5 k /month) , from where i have started online day trading
with a laptop and an internet connection. This is my full time profession now, and i have no other earnings. Presently i am doing simple equity trading, on NSE/BSE.

Suppose until 31st March 2012 i have a Gross profit of 3L .

4 Lacs Of Gain
1 lacs of Loss

how shall my Tax be calculated on earnings of 4 lacs. as on 31.03.2012,
which slab will it be charged.
do i need to register a company to show it as business.


eargerly waiting for your repy, on this matter.

regds

Trading as a business:-

4 Lacs Of Gain
1 lacs of Loss
----------------
Net profit 3 lakhs.

Tax'll be calculated on earnings of 3 lacs only as on 31.03.2012.
U don't need to register a company to show it as a business. U r an individual trader.
There are many like u.

There is also some provision of deduction of trading setup cost like PC maintenance-Internet-Electric-Telephone Cost from your profit to some extent in IT Return.
If u show it as a business, it will be easier to increase those deduction, however an individual trader is also eligible for those deduction to some extent.
For details in this matter you have to consult with a Income Tax Prof.
Best wishes.

good topic leo
you are from which city?
i am thinking of doing the same in 1years time if i m successful

i havenot started trading as of yet
i traded demo forex accounts and am quite successful
i am understanding the technicals
need to learn proper money management

i am starting with 1-1.5lac from next month hopefully

can u suggest me a suitable broker for me?

i am more of an technical trader with few knowledge on the fundamentals

i am primarily looking to trade in 1lot NIFTY futures and may be the few future contracts.

i want good charting n low brokerage..

any help would be hugely appreciated

thank you !!

i have not explored derivatives now, of course i will in a few months time,
i trade on HDFC treading platform, the brokerage is high, but their service is excellent, they send across 3 statements to you everyday, at closure of trade updating your book of accounts. That is good for me.

As of now, i have not picked on any broker, though i am chased by many.
I trade on my own analysis, mostly the technicals using simple market trend patterns on benchmark indexes(NIFTY/SENSEX),

thats how im doing it now, best of luck to you !

can you please indicate the percentage SLAB that will be applicable in thsi case. thanks in advance !