Multiple trade on one stock in a single day

#1
I am little confused! for example on 6-5-14 I buy 1 stock of ABC ltd. @100 with target 105 and once it meets I sell it @105 round trip is completed .Now again ABC Ltd comes at @95 I buy 1 share with stoploss @92 It meets @92 and I loose this time and again I decide, once ABC Ltd will reach @95 I will buy with target @100.and the process will continue for the day.
My question is:
1.can I do this first of all?
2.Is there any taxation issue?

Your reply will be highly appreciated.Thanks.
 
#2
I am little confused! for example on 6-5-14 I buy 1 stock of ABC ltd. @100 with target 105 and once it meets I sell it @105 round trip is completed .Now again ABC Ltd comes at @95 I buy 1 share with stoploss @92 It meets @92 and I loose this time and again I decide, once ABC Ltd will reach @95 I will buy with target @100.and the process will continue for the day.
My question is:
1.can I do this first of all?
2.Is there any taxation issue?

Your reply will be highly appreciated.Thanks.
Yes dear, you can do this as many times as you wish during the entire trading session. This is called intra day trading, where you have to square up your buy/sell quantities. The profits will be offset by losses and you can be in net +ve or net-ve.
Assuming you do this intra day for a month and get net +ve of Rs. 10,000/-, this will be short term capital gains on equities and will be taxed at 15%.
Regards. Khurshed.
 
#3
Yes dear, you can do this as many times as you wish during the entire trading session. This is called intra day trading, where you have to square up your buy/sell quantities. The profits will be offset by losses and you can be in net +ve or net-ve.
Assuming you do this intra day for a month and get net +ve of Rs. 10,000/-, this will be short term capital gains on equities and will be taxed at 15%.
Regards. Khurshed.
but intraday trading is not short term capital gain it is a business income hence profits are added to whatever tax category you are in and taxed accordingly and not charged at flat 15%
 

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