Tax on Intraday Trading
| Sample Example | |||
| Particulars | Scenario 1 (Full Time Trader) | Scenario 2 (Salaried + Trader) | Scenario 3 (Salaried + Trader) |
| Salary Income | ₹0 | ₹15,00,000 | ₹10,00,000 |
| Intraday Trading Profit | ₹5,00,000 | ₹2,00,000 | ₹2,00,000 |
| Gross Total Income | ₹5,00,000 | ₹17,00,000 | ₹12,00,000 |
| Standard Deduction | Not applicable | ₹75,000 | ₹75,000 |
| Taxable Income | ₹5,00,000 | ₹16,25,000 | ₹11,25,000 |
| Final Tax Impact | Tax becomes zero due to rebate | Tax payable after cess is ₹1,30,000 | Tax becomes zero due to rebate |
| Total Tax Payable | ₹0 | ₹1,30,000 | ₹0 |
| What is Intraday Trading | Intraday trading means buying and selling equity shares on the same trading day. |
| Taxation | Intraday trading income is generally treated as Speculative Business Income. It is not taxed at a fixed rate like STCG or LTCG. It is taxed as per your applicable income tax slab. |
