Hi, If we SELL our holding shares ( bought 3 years before )at morning and on same day; buy again later at noon , will it be LTCG for selling it or will it be considered intraday as I bought again same company shares? Pls advise. thankyou.
Hey @Vik,
When one buys and sells the same security of equal quantity in a single day, it will be considered as an Intraday transaction even when you were holding shares for more than 3 years.
Continuation to previous question, mam, So if I sell 10 and later buy 9 on same day. Will this become LTCG? As sold shares were older than 1 year.
Pls respond to my previous question
Hey @Vik
Clarification on the above query.
When you sell a security from your Holdings Section of the Demat account it will be considered as a Capital Gain transaction (Long term or Short term, depending on the holding period).
When you buy or sell a security which might be a part of your holdings (for e.g. using the search option), the brokers will explicitly give an option, whether the transaction is to treated as Intraday or Delivery? Thus the taxability will depend on the category selected at the time of transacting.
Apologies, broker says there is no such option. Kindly help .
Hey @Vik
Here is an Upstox snapshot for your reference:
- When you buy or sell from the search option:
- When you try to sell shares from your holdings: (it does not give an option to change to intraday)
It depends on how your broker handles it . If the sold shares are transferred out of your demat account, then it should be LTCG. However, most brokers just net off the positions intraday by default and then it will be considered an intraday trade.
If you sold 10 and bought 9, most likely your broker netted off 9 shares intraday and transferred out only 1 share from your demat account . In that case, the sale of 1 share will be treated as a LT transaction and for the other 9 , it will be intraday. Also, the STT for intraday trades is lower and most likely your broker charged STT on 9 shares as intraday and only 1 as delivery based.
If the transaction is already done, check how many shares, if any, were transferred out of your demat account and whether you were charged STT for intraday trades or for delivery . If you are contemplating it, please check with your broker. If the broker says there is no option not to square off intraday , you will have no choice but to report it as intraday trading business income and file ITR-3.
can i sell my demat holdings in NSE and buy the same in BSE on same day to avoid intraday profit (business income).
Hello @premi24b
Yes, you can sell your demat holdings in NSE and buy the same stock in BSE on the same day. However, as per the exchange guidelines if you sell your share in NSE and buy the same in BSE on the same day it will be treated as an Intraday.
In India, intraday trading profits are treated as speculative business income and taxed according to your applicable income tax slab rates. In contrast, capital gains from the sale of securities held for more than one day are categorized as either short-term or long-term capital gains, each subject to specific tax rates. It’s essential to classify your trading activities correctly to ensure accurate tax reporting and compliance.
for FY 2024-25 (AY2025-26), Other income 4.5L+STCG 1.5L=Total 6L, is person eligible for getting Rebate under 87a(new Regime) for STCG? will his effective income tax liability become Zero? @Sakshi_Jain
- No
- No
Your tax liability: 31200
Hello @Vipul07
Rebate under Section 87A is not available on income taxed at special rates, such as STCG under Section 111A. Hence, even if your total income is below ₹7 lakh, you have to pay tax on STCG.
@CA_Anand_Thakor thank you sir
@Swapnil_Agarwal thank you sir