swaminathan (SE) (39 Points)
20 February 2010Hi,
I do intraday trading..Suppose if i earn a profit of 7lac p.a..is my tax rate 30%? What difference does it make in tax rates if i trade as individual or non individual or other category? Which is the best way to reduce my tax rate? Ur suggestions would be appreciated dearly..
Amir
(Learner)
(4016 Points)
Replied 21 February 2010
Dear Swaminathan,
Intraday trading will fall under speculative business since it is not supported by delivery............
Now if u r an individual/HUF then Tax will be calculated as per Slab on the Total Income (including Profit on Itra day trading) - Rs. 7 Lacs U can claim Deduction u/s 80 C amounting to Rs. 1Lacs
If U do trading in the name of a firm or a company then Flat 30% Tax is to be paid on the Profits from Day trading...................
CAclubindia
