{"id":27077,"date":"2026-05-11T10:43:20","date_gmt":"2026-05-11T10:43:20","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?post_type=personal-finance&#038;p=27077"},"modified":"2026-05-11T10:43:20","modified_gmt":"2026-05-11T10:43:20","slug":"intraday-trading-taxation","status":"publish","type":"personal-finance","link":"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/","title":{"rendered":"How Gains From Intraday Trading are Taxed"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Intraday trading can feel simple on the surface. You buy and sell on the same day, book a profit or loss, and move on. But when you are thinking of these from a tax side, these are not the stock gains or capital gains.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In India, gains from intraday trading are taxed as speculative business income. In simpler words, your intraday trading income is part of your total income. This allows it to be taxed under your income tax slab, not under the gains.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This guide explains how intraday trading tax works in India for FY 2025-26, how losses are adjusted, which expenses can be claimed, and which ITR form you need to file.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/#What_Is_Intraday_Trading_Income\" title=\"What Is Intraday Trading Income\">What Is Intraday Trading Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/#Intraday_Gains_As_Speculative_Business_Income\" title=\"Intraday Gains As Speculative Business Income\">Intraday Gains As Speculative Business Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/#Tax_Rate_On_Intraday_Trading_Income\" title=\"Tax Rate On Intraday Trading Income\">Tax Rate On Intraday Trading Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/#How_Intraday_Trading_Losses_Are_Treated\" title=\"How Intraday Trading Losses Are Treated\">How Intraday Trading Losses Are Treated<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/#Deductible_Expenses_For_Intraday_Traders\" title=\"Deductible Expenses For Intraday Traders\">Deductible Expenses For Intraday Traders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/#Tax_Rate_Under_Old_And_New_Tax_Regime\" title=\"Tax Rate Under Old And New Tax Regime\">Tax Rate Under Old And New Tax Regime<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/#ITR_Filing_Audit_and_Advance_Tax_Rules\" title=\"ITR Filing Audit and Advance Tax Rules\">ITR Filing Audit and Advance Tax Rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/#How_To_Report_Intraday_Trading_Income\" title=\"How To Report Intraday Trading Income\">How To Report Intraday Trading Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/#Common_Mistakes_To_Avoid_In_Intraday_Taxation\" title=\"Common Mistakes To Avoid In Intraday Taxation\">Common Mistakes To Avoid In Intraday Taxation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/intraday-trading-taxation\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-what-is-intraday-trading-income\"><span class=\"ez-toc-section\" id=\"What_Is_Intraday_Trading_Income\"><\/span>What Is Intraday Trading Income<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Intraday trading income refers to the profit or loss earned from buying and selling stocks. This includes all the trades that are completed within the same trading day. The position is squared off before the market closes. This means by the end of the day, there will be no delivery of shares to your demat account.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buying and selling the same stock on the same day.<\/li>\n\n\n\n<li>No actual ownership or transfer of shares.<\/li>\n\n\n\n<li>Profit or loss is based on price movement.<\/li>\n\n\n\n<li>Treated as trading activity, not investment.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-intraday-gains-as-speculative-business-income\"><span class=\"ez-toc-section\" id=\"Intraday_Gains_As_Speculative_Business_Income\"><\/span>Intraday Gains As Speculative Business Income<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Intraday trading differs from investing because there is no delivery of shares. Under the Income Tax Act, such transactions are treated as speculative. This puts intraday income under the business income category, not capital gains.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Treated as speculative business income.<\/li>\n\n\n\n<li>Covered under Section 43(5) as no delivery-based trade.<\/li>\n\n\n\n<li>Reported under Profits and Gains from Business or Profession.<\/li>\n\n\n\n<li>Applies even if trading is occasional, not full-time.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This classification mainly impacts taxation rules, loss adjustment, and reporting requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tax-rate-on-intraday-trading-income\"><span class=\"ez-toc-section\" id=\"Tax_Rate_On_Intraday_Trading_Income\"><\/span>Tax Rate On Intraday Trading Income<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Intraday trading income is taxed as part of your overall income. Since it falls under speculative business income, no separate or fixed tax rate applies to it.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Taxed as per the applicable income tax slab.<\/li>\n\n\n\n<li>No special rate like capital gains.<\/li>\n\n\n\n<li>Same treatment under both tax regimes.<\/li>\n\n\n\n<li>Tax liability depends on total income.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This means the final tax on intraday income varies from person to person based on their overall earnings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read Also:<\/strong> <a href=\"https:\/\/www.pocketful.in\/blog\/tax\/mtf-tax-implications-in-india\/\">MTF Tax Implications in India: STCG, LTCG &amp; Holding Period<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-intraday-trading-losses-are-treated\"><span class=\"ez-toc-section\" id=\"How_Intraday_Trading_Losses_Are_Treated\"><\/span>How Intraday Trading Losses Are Treated<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Intraday trading losses are treated as speculative business losses. The rules for adjusting these losses are stricter than those for other types of losses, so understanding this section is important.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can be set off only against speculative business income.<\/li>\n\n\n\n<li>Cannot be adjusted against salary, capital gains, or F&amp;O income.<\/li>\n\n\n\n<li>Unused losses can be carried forward for up to 4 years.<\/li>\n\n\n\n<li>Carry forward is allowed only if the ITR is filed on time.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This means if you incur a loss in intraday trading, you cannot reduce your overall tax immediately unless you have speculative profits in the same year or future years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-deductible-expenses-for-intraday-traders\"><span class=\"ez-toc-section\" id=\"Deductible_Expenses_For_Intraday_Traders\"><\/span>Deductible Expenses For Intraday Traders<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Intraday trading allows you to claim expenses. But it is important that these should be directly related to your trading activity. These deductions help reduce your taxable income. This in turn lower your overall tax liability. Some of the common expenses are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Brokerage charges are paid on trades.<\/li>\n\n\n\n<li>Securities Transaction Tax and exchange charges.<\/li>\n\n\n\n<li>GST paid on brokerage and services.<\/li>\n\n\n\n<li>Internet and data expenses used for trading.<\/li>\n\n\n\n<li>Trading platform or research subscriptions.<\/li>\n\n\n\n<li>Advisory or portfolio management fees.<\/li>\n\n\n\n<li>Depreciation on a laptop or trading setup.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tax-rate-under-old-and-new-tax-regime\"><span class=\"ez-toc-section\" id=\"Tax_Rate_Under_Old_And_New_Tax_Regime\"><\/span>Tax Rate Under Old And New Tax Regime<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Intraday trading income is taxed based on slab rates, not a fixed percentage. Since it is treated as speculative business income, it gets added to your total income. The tax you pay depends on which tax regime you choose and your overall earnings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-new-tax-regime-default\">New Tax Regime (Default)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This regime is designed to keep things simple. It offers lower tax rates across slabs but removes most deductions. Your total income, including intraday profits, is taxed directly based on these slabs.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Income Slab<\/th><th>Tax Rate<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Up to \u20b94,00,000<\/td><td>Nil<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">\u20b94,00,001 \u2013 \u20b98,00,000<\/td><td>5%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">\u20b98,00,001 \u2013 \u20b912,00,000<\/td><td>10%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">\u20b912,00,001 \u2013 \u20b916,00,000<\/td><td>15%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">\u20b916,00,001 \u2013 \u20b920,00,000<\/td><td>20%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">\u20b920,00,001 \u2013 \u20b924,00,000<\/td><td>25%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Above \u20b924,00,000<\/td><td>30%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This regime focuses on simplicity and lower base tax rates.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower slab rates reduce overall tax burden for many taxpayers.<\/li>\n\n\n\n<li>Minimal documentation since most deductions are removed.<\/li>\n\n\n\n<li>Easy to calculate and plan taxes.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-old-tax-regime-optional\">Old Tax Regime (Optional)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This regime follows the traditional structure. Tax rates are higher in comparison. But you can reduce your taxable income through deductions and exemptions.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Income Slab<\/th><th class=\"has-text-align-center\" data-align=\"center\">Tax Rate<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Up to \u20b92,50,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">Nil<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">\u20b92,50,001 \u2013 \u20b95,00,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">\u20b95,00,001 \u2013 \u20b910,00,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">20%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Above \u20b910,00,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">30%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This regime is built around deductions and exemptions.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Allows deductions like 80C, 80D, HRA, and home loan benefits.<\/li>\n\n\n\n<li>Helps reduce taxable income when investments are well planned.<\/li>\n\n\n\n<li>Suitable for individuals with structured financial planning.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The choice depends on how much you can reduce your taxable income through deductions versus benefiting from lower slab rates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-quick-difference\">Quick Difference<\/h3>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th>Basis<\/th><th>New Tax Regime<\/th><th>Old Tax Regime<\/th><\/tr><\/thead><tbody><tr><td>Tax Rates<\/td><td>Lower slab rates<\/td><td>Higher slab rates<\/td><\/tr><tr><td>Deductions<\/td><td>Very limited deductions<\/td><td>Multiple deductions allowed (80C, 80D, HRA)<\/td><\/tr><tr><td>Standard Deduction<\/td><td>Available (\u20b975,000 for salaried)<\/td><td>Available (\u20b950,000 for salaried)<\/td><\/tr><tr><td>Complexity<\/td><td>Simple and easy to calculate<\/td><td>Requires planning and documentation<\/td><\/tr><tr><td>Best Suited For<\/td><td>Individuals with fewer deductions<\/td><td>Individuals with high tax-saving investments<\/td><\/tr><tr><td>Flexibility<\/td><td>Less flexibility in reducing taxable income<\/td><td>More flexibility through exemptions and deductions<\/td><\/tr><tr><td>Default Option<\/td><td>Yes<\/td><td>No<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read Also:<\/strong> <a href=\"https:\/\/www.pocketful.in\/blog\/trading\/f-and-o-trading-income-tax\/\">Income Tax on F&amp;O Trading in India<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-itr-filing-audit-and-advance-tax-rules\"><span class=\"ez-toc-section\" id=\"ITR_Filing_Audit_and_Advance_Tax_Rules\"><\/span>ITR Filing Audit and Advance Tax Rules<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Intraday trading income have deep compliance requirements. This includes selecting the correct ITR form and checking the applicability of the audit. Also, you must consider paying advance tax if required.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-itr-filing\">ITR Filing<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Intraday traders need to file ITR-3.<\/li>\n\n\n\n<li>Income is reported under business or profession.<\/li>\n\n\n\n<li>Using ITR-1 or ITR-2 is not suitable in this case.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-tax-audit\">Tax Audit<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Audit may apply based on turnover and profit declared.<\/li>\n\n\n\n<li>Turnover is calculated using the absolute profit method.<\/li>\n\n\n\n<li>Audit is required if limits under tax rules are crossed.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-advance-tax\">Advance Tax<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Applicable if total tax liability exceeds \u20b910,000.<\/li>\n\n\n\n<li>Paid in quarterly instalments during the year.<\/li>\n\n\n\n<li>Delay can lead to interest charges.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Proper compliance helps avoid penalties and ensures that losses can be carried forward without issues.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-report-intraday-trading-income\"><span class=\"ez-toc-section\" id=\"How_To_Report_Intraday_Trading_Income\"><\/span>How To Report Intraday Trading Income<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When you are planning to report the intraday income, there are some simple steps that you would need to follow. These are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Calculate total intraday profit or loss from broker statements.<\/li>\n\n\n\n<li>Compute turnover using the absolute profit method.<\/li>\n\n\n\n<li>Deduct eligible trading-related expenses.<\/li>\n\n\n\n<li>Report income under Profits and Gains from Business or Profession.<\/li>\n\n\n\n<li>File ITR-3 within the due date.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Accurate reporting ensures that your income is correctly classified and any losses are carried forward without issues.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-common-mistakes-to-avoid-in-intraday-taxation\"><span class=\"ez-toc-section\" id=\"Common_Mistakes_To_Avoid_In_Intraday_Taxation\"><\/span>Common Mistakes To Avoid In Intraday Taxation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many traders focus only on profits and ignore how those profits are reported. This often leads to errors during tax filing, which can result in penalties later. Some of the things to avoid are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reporting intraday income as capital gains instead of business income.<\/li>\n\n\n\n<li>Filing the wrong ITR form like ITR-1 or ITR-2.<\/li>\n\n\n\n<li>Ignoring intraday losses and not reporting them.<\/li>\n\n\n\n<li>Incorrect turnover calculation.<\/li>\n\n\n\n<li>Missing the ITR filing deadline.<\/li>\n\n\n\n<li>Not keeping proper records of trades and expenses.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Intraday trading income is taxed as speculative business income and not as capital gains. This is the key rule you should remember when calculating taxes. This will ensure you add the amount to the total income and avoid miscalculation that can lead to penalties.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding these basics helps you stay compliant and avoid errors during filing. With <a href=\"https:\/\/www.pocketful.in\/\">Pocketful<\/a>, you can track your trades, access detailed reports, and manage your tax calculations more efficiently while trading.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">S.NO.<\/th><th class=\"has-text-align-left\" data-align=\"left\">Check Out These Interesting Posts You Might Enjoy!<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">1<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/intraday-trading-vs-delivery-trading\/\">Difference Between Intraday Trading and Delivery Trading<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">2<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/intraday-trading-timings\/\">Understanding Intraday Trading Timings<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">3<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/how-to-select-stocks-for-intraday\/\">How to Choose Stocks for Intraday the Right Way?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">4<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/intraday-trading-strategies-and-tips-for-beginners\/\">Top 10 Intraday Trading Strategies &amp; Tips for Beginners<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">5<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/how-to-use-pivot-point-in-intraday-trading\/\">How to Use Pivot Points in Intraday Trading?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">6<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-intraday-trading\/\">What is Intraday Trading?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">7<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-day-trading\/\">What Is Day Trading and How to Start With It?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">8<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/silver-intraday-trading-strategies\/\">Silver Intraday Trading Strategy<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">9<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/personal-finance\/best-day-trading-courses-and-certificates\/\">Top 10 Day Trading Courses in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">10<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/intraday-trading-rules-and-new-sebi-regulations\/\">Intraday Trading Rules and New SEBI Regulations<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-faqs\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\">Is Intraday Trading Income Taxed As Capital Gains?<\/h3><p class=\"saswp-faq-answer-text\">No, intraday trading income is not treated as capital gains. It is classified as speculative business income and taxed as per your applicable income tax slab.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Which ITR Form Should Be Used For Intraday Trading?<\/h3><p class=\"saswp-faq-answer-text\">Intraday traders need to file ITR-3 since the income is reported under business or profession.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Can Intraday Trading Loss Be Adjusted Against Salary?<\/h3><p class=\"saswp-faq-answer-text\">No, intraday trading loss cannot be set off against salary or other income. It can only be adjusted against speculative business income.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Are Trading Expenses Allowed As Deductions?<\/h3><p class=\"saswp-faq-answer-text\">Yes, expenses like brokerage, internet charges, and trading tools can be claimed if they are directly related to trading activity.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Is Advance Tax Required For Intraday Traders?<\/h3><p class=\"saswp-faq-answer-text\">Yes, if your total tax liability exceeds \u20b910,000 in a year, you need to pay advance tax in instalments.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Intraday trading can feel simple on the surface. You buy and sell on the same day, book a profit or loss, and move on. But when you are thinking of these from a tax side, these are not the stock gains or capital gains.&nbsp; In India, gains from intraday trading are taxed as speculative business [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":27079,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[18],"tags":[],"class_list":["post-27077","personal-finance","type-personal-finance","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"acf":{"freelancer":"Not Added"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Gains From Intraday Trading are Taxed<\/title>\n<meta name=\"description\" content=\"Learn how intraday trading tax works in India for FY 2025-26. 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