Income Tax on Intraday Trading

Understanding Intraday Trading Buying and selling stocks within the same trading day. Income categorized as speculative business income under Business and Profession head. Turnover Calculation Turnover equals absolute profit from trades. Determines tax audit applicability.

Tax Audit Applicability Depends on turnover and profit margins. Income Tax Rules Reported as Business Income under PGBP head. Filed using ITR-3 form.

Tax Calculation Taxed at slab rates based on taxable income. Applicability of Advance Tax Payable in installments or lump sum based on tax regime and profit margins.

New Tax Regime Alternative tax calculation method with specific rules. Carry Forward Loss Speculative business losses can be carried forward for up to 8 years.