Comment on Taxation Simplified

Thanks Jim,

What I’d suggest is that it doesn’t matter if you do trading in one demat and short term investments in other, keep all your transactions in the capital markets under one category either you as a trader or you as an investor..

1. If you are trading in f&O, you automatically can consider yourself as a trader(trading as a business) so even your short term equity trading has to be considered as trading as business.
Your tax liability hence would be on 20000+30000+40000 = 90000.
On this 90000, you can set off your business expenses as internet connection, phone calls, advisory fees etc whichever applicable and then you pay 20% of that as your net taxes.
If this 90000 additional income pushes your tax slab to 30% then you will have to pay accordingly. Note that this income from markets though is business, what it means is that for a salaried person it adds to his salary income and you have to pay taxes according to the slabs..

2. As I said earlier, it is not being compliant to have 2 different demat accounts to show you as an investor in one and as a trader in another.

Cheers,
Nithin

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