If i buy stocks from the Fno Profit... will it be taxable same year or the tax liability is defered to the next year

Income Tax Income from Business or Profession
1

if i buy stocks from the Fno Profit… will it be taxable same year or the tax liability is defered to the next year.

2

Hey @Rajendra303,

Your profits from F&O trading will be taxable as business income. You can re-invest the profits in stocks, however, this will not affect your tax liability and you will have to pay taxes on the F&O profits in the same year.

3

@Shrutika_Shah When option contract exercised, “Giving” physical delivery of stocks to broker from demat holding… Profit/Loss from giving physical delivery is reported under Capital income Or F&O income??

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4

Hello @Vipul07

When you give physical delivery of stocks from your account, it will be taxed as STCG / LTCG based on holding period of shares.

Capital Gains = Strike price - Buy price

Also, premium received on option will be taxed as income from Business & profession.

Thank you.

5

Thank you for your response @AkashJhaveri sir. I would like to know futher, whether Giving physical delivery of shares reflect in AIS/TIS under Sale of securities section? If Not - then in that case, do we need to report Gain/loss under F&o income?

6

Hello @Vipul07

Yes physical delivery will reflect under AIS under sale of securities.
Thus as mentioned earlier, it should be reported as Capital Gains.

Thank you

7

thank you very much sir