There is very less information on how Margin Trading Facility for Equity cash segment treated. Unlike futures where there is a low margin required, here the broker lends out a loan upto 80% of the required margin amount and also pledges the shares once they are purchased. Curious to know how these are taxed.
Hello @sumukha_shah
Capital Gains will be taxed in a similar manner even though shares are purchased using Margin trading facility. However, you can claim the interest or charges paid to the broker as a direct expense while calculating the Capital Gains.
Thank you.