I am a stock trader in all segment ( F&O / Positional/ Intraday) , I would like to get some help to understand the tax calculation and audit related to it
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Please note that your Intraday trading or positional trade income can be classified as speculative business income and while Trading in F& O is considered in Non speculative business income and will be considered as Business Income . under Business income it will be added to your total income subject to limit as prescribed by Finance act time to time while Income from Short term profit will be taxed at 15% and only short term losses can be adjusted from it under Capital Gain. You have to plan your taxes wisely looking at Expenses incurred by you in doing this trading activity .
Accounting and Audit is simpler, Contract note wise accounting is desired .
Audit will again depend upon your income and limit as prescribed from time to time
CAclubindia
