Sir I have a question iam 20 year old and iam a trader and I made 10 lack from trading and I have a doubt about tax on the profit tht i earned how much should I pay tax is this profit comes under the 12.75 lack employee salary or there is an another section for trading and it is only 3 lack for non taxable income above tht we should file itr now wt is the solution for this which section is applicable for me

Ans: Your understanding in relation to STCG is correct. You need to declare this at the time of filing ITR and no where else. Further, please ensure that you pay advance taxes on STCG booked.

If you can hold the shares for long term it would be good, you will further save taxes to the extent of 5% of your gains.

Ans: Here's a breakdown of your tax situation and some advice:

Tax on Share Trading Profits (STCG):

You're correct. Since you plan to sell the shares within 5-6 months (short-term), the profits will be considered Short-Term Capital Gains (STCG).
STCG on equity shares is taxed at a flat rate of 15% in the old tax regime.
Paying STCG Tax:

You don't need to pay STCG tax directly while filing your Demat account.
However, you are responsible for reporting the STCG income and paying the tax when you file your Income Tax Return (ITR) for the relevant financial year.
ITR Filing:

While filing your ITR, you'll need to declare the sale of shares, the profits earned (STCG), and the tax liability (15%).
The ITR itself doesn't involve direct tax payment. You might need to pay any tax due through challan or other methods specified by the Income Tax department.
Profit Booking vs. Long-Term Investment:

Here's a consideration for your strategy:

Tax Benefit of Long-Term Capital Gains (LTCG): If you hold the shares for more than 1 year, any profits become Long-Term Capital Gains (LTCG). LTCG exceeding Rs. 1 lakh attracts a 10% tax with indexation benefit (reducing impact of inflation). This can be a tax advantage compared to the flat 15% on STCG.
Market Volatility: Short-term trading involves higher risk due to market volatility. Consider your risk tolerance and investment goals.
Recommendation:

It might be beneficial to hold the shares for the long term to potentially benefit from LTCG tax advantages and potentially higher returns over time. However, the decision depends on your individual circumstances, risk tolerance, and investment goals.
Additional Tips:

Consult a qualified tax advisor for personalized advice on your specific tax situation, considering your income sources, deductions, and tax regime.
Research and understand the risks involved in share trading before investing.

I hope this clarifies your queries!

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Unless you require the money, make the shares long term. This will help you save STCG tax of 15% as rightly pointed out by you.

If you book short term gains then you will need to pay advance taxes accordingly keeping this amount in mind in the quarter when it's due.

No change to the demat account but in the ITR it will be shown in taxes paid once you pay the same as advance tax.

Please take your CAs advice before moving ahead.