what income tax should i be charged from income through share market ? pls help?



im basically a short term trader and i trade in derivatives my income is about 15 lac per annum and it is completely short term income .so what tax should i need to pay ( short term capital gain tax or according to tax slab ie30% OR BOTH ) pls tell me the tax

what income tax should i be charged from income through share market ? pls help?
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2 Replies to “what income tax should i be charged from income through share market ? pls help?”

  1. Derivatives trading comes under business income. File your tax return in form ITR 4.

    You will not get benefit of 15% concessional tax for derivatives trading income.

    First 1.5 lakhs of income is tax free.
    Next Rs. 1.5 lakhs taxable @ 10%
    Next Rs. 2 lakhs taxable @ 20%
    Balance (over and above 5 lakhs), applicable tax rate is 30%.
    Calculate the total tax, add 3% on such tax as education cess. Pay the total tax with interest for 5 months before 31st August 2009 and file your return.

    You may still face some penalty for late filing of return and not paying advance taxes on due dates.






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