How Much % Income Tax for Day Trading or Short term Profit

[Luniaji]

Hello Friends,
Suppose if investment is 1 lac and daily we trade 2-3 times means 4-6 lac transaction daily and in a month 1 cr tranaction is done than can we comes under audit .

Second How much income tax applicable if daily profit comes on intraday basis.

 

[Nireka]

The applicability of the Tax Audit as per the Income Tax Act depends on the Trading Turnover. Trading Turnover in case of Equity Intraday transaction is the Absolute Profit i.e. sum of the absolute value of profit and loss.

1. If the Trading Turnover in a financial year is up to INR 2 Crore and net profit is less than 6% of the trading turnover
2. If the Trading Turnover exceeds INR 2 Crore irrespective of profit or loss

You can check if you are liable to Tax Audit by using this tool - Determine Tax Audit

Intraday Profit is considered to be a Speculative Business Income. It is taxed as per applicable slab rates.

Please note that the trading transactions must be reported in the Income Tax Return as Business Income and Form ITR-3 should be filed.