Income From Business and Profession

[Nireka]

Hi @Priyankur_Ghosh,

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.

Income Tax on Trading - Learn by Quicko

@Aakash_L

Loss from equity intraday trading is a speculative business loss. Speculative loss can be set off against Speculative Profits only. Thus, it cannot be adjusted against F&O trading income. However, you can carry forward the loss for 4 years and adjust it against speculative profits in future.

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