Intraday trading, a common practice in the stock market, involves buying and selling stocks within the same trading day.

Given the popularity of F&O trading and its classification as derivatives, traders engaging in such activities are required to file income tax returns to report their income or losses from these trades.

it’s imperative to fulfill tax obligations by filing Income Tax Returns (ITR) and settling taxes on such earnings. Equity share trading typically manifests in two primary forms: Equity Delivery Trading and Equity Intraday Trading.

Loss remaining after set-off refers to the portion of the loss that taxpayers can carry forward to future years to offset against future incomes.

Absolute profit refers to the total of positive and negative differences in trading outcomes. There are two primary methods for calculating trading turnover:

In India, businesses and professions span a diverse spectrum, each requiring specific categorization for tax purposes. To ensure accurate classification, the income tax department has established a comprehensive list of business and profession codes.

Tax loss harvesting involves strategically selling shares that have experienced losses in order to offset any realized gains within the same financial year. By doing so, investors can effectively reduce their overall tax liability.

Traders in financial markets encounter various expenses while conducting their business. Understanding which expenses qualify for tax deductions is crucial for sound financial management and adherence to tax laws.

Income from trading activities is indeed categorized as business income under the Income Tax Act. This business income can further be classified into two main categories:

Computer Age Management Services (CAMS) operates as a SEBI-regulated entity within the Registrar and Transfer (R&T) category. This platform offers technology-driven services and processing solutions to mutual fund companies and investors alike.

A bonus offering, also referred to as a bonus allotment or bonus share offering, occurs when a corporation issues additional shares to its present stockholders at no additional expense.

Value of Gifted Shares: The value of the gifted shares plays a crucial role in determining the tax implications. It’s essential to accurately assess the fair market value of the shares at the time of transfer.

GST for Traders – Reporting in ITR-3: For traders reporting under ITR-3, it is essential to ensure that the turnover reported aligns with the sales reported in the GST Return to prevent any mismatch notices.

Dividend Distribution Tax (DDT) was a tax levied on companies that distributed dividends to their shareholders, akin to Tax Deducted at Source (TDS).

Before the introduction of the Securities Transaction Tax (STT), tax evasion was a concern as trading transactions often went unreported. In response, the Finance Act of 2004 introduced STT.

Investing in unlisted shares means buying ownership stakes in companies that haven’t gone through the process of making their shares available for public trading through an Initial Public Offering (IPO).

Exchange-traded funds (ETFs) made their debut in India in 2002, offering investors a diversified and cost-effective investment option. Unlike investing in individual stocks, where the risk is concentrated in a single company, ETFs allow investors to spread their risk across multiple companies within a specific sector or index.

Computer Age Management Services (CAMS) operates as a SEBI-regulated entity within the Registrar and Transfer (R&T) category. This platform offers technology-driven services and processing solutions to mutual fund companies and investors alike.

Income from trading activities is indeed categorized as business income under the Income Tax Act. This business income can further be classified into two main categories:

Traders in financial markets encounter various expenses while conducting their business. Understanding which expenses qualify for tax deductions is crucial for sound financial management and adherence to tax laws.