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Tejas Chokshi  | Answer  |Ask -

Tax Expert - Answered on Sep 11, 2023

CA Tejas Chokshi has over 20 years of experience in financial planning, income tax planning, strategic and risk advisory, banking and financial products and accounting and auditing.
He is an information system auditor, a forensic auditor and concurrent bank auditor.
Chokshi, who has a master’s degree in management, audit and accounting from Gujarat University, has completed his CA from the Institute of Chartered Accountants of India.... more
Asked by Anonymous - Aug 02, 2023Hindi
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If one does intraday trading in shares- the profit made is directly taxed as per his income slab. If he makes a loss- how is it treated in income tax? Also, is there any other implications like turnover tax or audit by CA on the total trade value involved at the time of filing IT returns?

Ans: Intraday trading is subject to specific tax rules and regulations. Here's how profits and losses from intraday trading are treated for income tax purposes, along with information on turnover tax and tax audits:

Tax Treatment of Intraday Trading Profits and Losses:

Profits: Profits made from intraday trading are considered as speculative business income in India. These profits are added to your total income and are taxed as per your applicable income tax slab rates.

Losses: Intraday trading losses can be treated in two ways:

Set Off Against Speculative Business Income: You can set off intraday trading losses against any other speculative income you have earned during the same financial year.
Carry Forward of Losses: If you are unable to set off the entire loss in a given financial year, you can carry forward the remaining loss for up to four assessment years. This can be adjusted against any speculative business income in those years.
Turnover Tax:

In India, there is no specific turnover tax on intraday trading. However, you may be subject to other charges and taxes, such as Securities Transaction Tax (STT), brokerage charges, and other regulatory fees.
Tax Audit:

In India, if your turnover from intraday trading exceeds a certain threshold, you may be required to get your accounts audited by a Chartered Accountant (CA) under Section 44AB of the Income Tax Act.
The limit is 1 cr for FY 2022-23. This limit may change over time.
Documentation and Compliance:

It's crucial to maintain proper records of all your intraday trading transactions, including contract notes, bank statements, and other relevant documents.
Ensure that you file your income tax returns accurately and disclose your speculative income, losses, and other financial details as required by the tax authorities.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Hello sir this is Nishat , I passed my 12th in the year 2023 with a good percentage but however I couldn’t see it for chemistry exam. So obviously I failed in that subject so I decided to again reappear for that exam and in 2024 I gave betterment exam from my state board in the subject biology and chemistry. However I scored far better in biology than last time but (Chemistry) I don’t know maybe it’s it’s because of the issues that we have with our board. I couldn’t score good marks so even I had decided to give (Chemistry) separately and so in 2024. I again set for (Chemistry) exam under nios I and I scored 80 so now the thing is that I’ll be having two mark sheet so while applying in need I cannot possibly select the code 2 because although I already have the state board certificate but the NIOS certificate is not yet out and it will be out by end of the March sir can I possibly select the code one that is appearing or will it create problems while counselling or is there any other option please help me out sir , I’m very desperate like I have prepared for neey for the last two years and I don’t want to put my hard work into vain. Please Sir help me out
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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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