Intraday Trading

Intraday trading can be exciting and profitable, but understanding how it’s taxed is key to keeping your hard-earned money. Let’s break it down:

✨ What is Intraday Trading?

- Buying and selling stocks on the same day without taking delivery.

- Classified as speculative business income under tax laws.

✨ How is it Taxed?

- Income Tax: Profits are added to your total income and taxed as per your income slab.

- Deductions: Expenses like brokerage fees, internet costs, and advisory charges can be claimed.

✨ Key Points to Remember:

1️⃣ Separate Records: Maintain detailed records of your trades and expenses.

2️⃣ Audit Requirement: If your turnover exceeds ₹1 crore (or ₹10 crore for digital transactions), your accounts may need an audit.

3️⃣ Carry Forward Losses: Speculative losses can be carried forward for 4 years and adjusted against speculative gains.

✨ Pro Tips for Smart Tax Planning:

- Use tax-saving investments to reduce your overall tax liability.

- Consult us to ensure compliance and optimize your tax strategy.

💡 Why This Matters:

Understanding intraday trading taxation helps you avoid penalties, reduce tax burdens, and make the most of your trading profits!

Are you an intraday trader? Share your experiences or questions in the comments! 👇

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