Taxation on equity
Speculative business income: Income from intraday equity trading is considered speculative. Non-speculative business income: Income from trading F&O on all the exchanges is considered as non-speculative business income. Taxation: Intraday and F&O income have to be added to your other income (salary, other business income, bank interest, rental income, and others), and taxes paid according to the tax slab. Short-term capital gain is taxed at 15% + cess. Long term capital gain taxed at 10% + cess over above Rs.100,000/- Dividend Income All dividend income received is taxed as per income tax slabs. The standard rate of TDS is 10% deducted on dividend income paid in excess of Rs 5,000 from a company or mutual fund. Carry forward Intraday losses can be carried forward for 4 years. F&O losses can be carried forward for 8 years. Short-term & Long term capital losses can be carried forward for 8 years. Offsetting in Gains & Loss: F&O gains can be ...