taxation on day trading of NSE futures

All the expenses other than investments for H/W and s/w will be fully deductible. 60% depreciation on WDV basis will be allowed on investments for h/w & s/w every year.

It would not make any difference. Except that only partial allowance for rent/electricity (related to office portion) will be allowed.

Nope, this is not possible. Only if you form a company and declare dividend, there will be double taxation in form of Dividend Distribution Tax.

Best Regards,
--Ashish

Indian traders can trade in foreign market subject to an annual outflow limit of USD 50,000. If the indian trader is a resident in India (Having stayed in India for more than 182 days in a year), the gains will be fully taxable. Whether the same will be taxable as Business gain or Capital Gain will depend upon the nature of trading.

If any tax is paid on those gains out of India or any with-holding tax is deducted (TDS), credit for the same will be allowed against tax liability in India.

Best Regards,
--Ashish

Thanks Ashis for enlightening on this taxation matter.
Thanks a lot again.

Hi Muttusagara & Ratan Jain!

With reference to yr query i have found a relevant answer to a similar question answered By the Tax Guru Mr.Subhash Lakhotia :

: Sir, I am basically a trader in equity. I do normally settle the transaction on intra-day basis. Some time I take delivery for short term gain. I do have investment in share also which have holding period more than 12 months. Do I need to seperate three activities as (a) Business income (b) Short-Term Capital gain (c) Long term gain which is not taxable. I do these online from home. What expenses could be deductible (internet charges/Demat charge/brokerage etc) to calculate such income and in what porpotion. I have strong doubt because demat charges includes for all the three activities and so can not be propotionised. Can that be adjusted fully against the income from business. What about the other charges such as society maintenance, electricity bill etc. Thanks
SunandSingh

A: A person may have three activities namely a Business Income, a Long-term capital gain and a Short-term capital gain. The computation of income will have to be done separately for each item of income. The long-term capital gains on listed securities will, however, be fully exempted from income-tax. The short-term capital gains would be subject to tax @ 10% only. The business income from trading in shares will, however, be calculated by reference to income and loss from different transactions during the year and the tax liability will arise based on the tax slab as is applicable to an individual. The expenses incurred by you on earning all the above income will be deductible pro-rata to the income earned by you in each separate activity. However, no expenses will be deductible in respect of long-term capital gains because in any case the income from long-term capital gains is fully exempt from tax. If you are maintaining a separate office for carrying out your business activities of stock market then the expenses incurred on society maintenance, electricity bills and telephone bills and all other expenses in connection with the earning of the income from business will be allowed as a deduction. If, however, you are not maintaining separate office then also you can claim pro-rata deduction of the expenses.
Subhash Lakhotia
Rgds

Suppose I declare my yields as business income, Is the STT paid deducted from my profits or is it from the tax payable?

Eg I have profit of say 200000 then tax is 60000 (at 30%), Is the STT deducted from 200000 (to decrease liable income) to deducted from the tax of 60000?

Will sales tax + edu. cess be deductible as well?

Hi !

Why dont yo try filling up ITR-4 form for filing income tax returns You will be able to get answers to your queries...
Rgds

hi ashish

thanx for ur valuable posts. u cleared lot of doubts abt tax.

cheers