13.4How is intraday trading income taxed?
Time-sensitive: Checked November 2026 for FY 2026-27. Verify on incometaxindia.gov.in, NSE, BSE or SEBI before filing or trading. Rules and rates change, so check the official source before acting.
1What is it?
Intraday equity profits are speculative business income, taxed at your income tax slab rate.
2Why does it exist?
Because no delivery happens, the law treats it as speculation rather than investment.
3Practical use
Speculative losses can only be set off against speculative gains, and carried forward for 4 years. Turnover may trigger audit requirements depending on its size; check the limits.
4Quick revision
- Speculative business income.
- Slab rate.
- Losses offset only speculative gains; 4-year carry forward.
5Knowledge check
Q1. Intraday profit tax rate?Show answer
Your income slab rate.
Q2. Can intraday losses offset salary?Show answer
No.
Q3. Carry forward period for speculative losses?Show answer
4 years.