Comment on Taxation Simplified

Nithin Kamath commented on 16 Jan 2014, 08:52 PM

1. There is no thumb rule as such when trading equity, but if you are trading futures and options, currency or commodity, you have to declare it as trader. But if your activity is the way you have described, you definitely look like an investor to me. 🙂

2.
a. Since you are an investor, for all long term profits(stocks that you held and sold after 1 year) the taxes are 0, and Short term capital gain tax is 15%( bought and sold before 1 year).
b. If you declare the same as a trader, you need to add any income from trading with any other income of yours including salary, and pay tax according to the slab you fall in as per IT department. But yes, if trading is your only income and if it is below Rs 2lks, there will be no taxes.

Hopefully this clarifies,

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