I am new in share market, i got some knowledge about STCG and LTCG, it is clear for me now. But recently when i open my Quicko Account there i see that i have a STCG (Which is ok) and Income From Business and Profession. But i don’t know why this (Income From Business and Profession) is showing in my account? I tried intraday 2 days only, and in that two days i book lose, then why this ‘Income From Business and Profession’ is showing in my account?? Please Help me.
As per the Income Tax Act, intraday trading is treated as Speculative Business Income, hence it is reported under the head ‘Income from Business and Profession’. If there are losses, the income would be negative and carry forward to 4 years.
In case, you want to report your intraday trades under the head capital gains, you can do so by deleting them from the head - ‘Income from Business and Profession’ and manually adding them under ‘Income from Capital Gains’.
Hope this helps
We are seeing some Reversal trades in your trading activity, to help you better understand can you please share your TaxP&L report downloaded from Zerodha Console on email@example.com.
Also, we’d recommend you to mask / remove the data shared, since TaxQ&A is a public forum and it is not advisable to share your personal data.