Income Tax on Share Trading
Simplify Tax Filing for Your Trading Income
Whether you're an investor or a full-time trader, income from buying and selling shares is taxable and needs to be reported accurately. At Account Wale, we offer expert tax filing services for stock market participants—ensuring compliance with income tax laws while maximizing your savings.
Is Share Trading Taxable?
Yes. Income earned from share trading is taxable under the Income Tax Act, and how it’s taxed depends on the type of trading activity:
-
Capital Gains: If you invest in shares and sell them after a holding period, it’s considered capital gains (long-term or short-term).
-
Business Income: If you're actively trading (intraday, F&O, high-volume), the income is treated as business income.
Types of Trading & Their Tax Treatment
Intraday Trading
-
Classified as speculative business income
-
Taxed at slab rates
-
Eligible for expenses/deductions
-
Audit required if turnover exceeds limits
Delivery-Based Trading
-
Held for more than 12 months = Long-Term Capital Gain (LTCG) (10% above ₹1 lakh)
-
Held for less than 12 months = Short-Term Capital Gain (STCG) (15%)
Futures & Options (F&O)
-
Treated as non-speculative business income
-
Taxed at slab rates
-
Audit applicable in certain cases
-
Eligible for expense deduction
Our Share Trading Tax Services Include:
Documents Required