New Brunswick Business Daily

How is intraday trading brokerage and other hidden tax and charges in India.sel and buy brokerage is there?

How in intra day taxed in india. WHile buying and selling we need to pay brokerage. How tax is calculated Tax is only for brokerage? wat are the taxes appicable. What are the other charges ?

Public Comments

1. Intraday Profits/Losses are Speculative income/losses under the income tax act. So there are a lot of precautions to be kept here. It CANNOT be setoff into delivery based capital gains. When you are buying and selling brokerage is payable as per the rate fixed by the broker. For intraday it is lower than delivery based. For eg. Mine is 0.10% for purchase or sale. And then a service tax @ 12.36% on this brokerage amount. And then another tax - Security Transaction Tax is levied, in case of Intra day it is levied only on the sale and not on the purchase value. So it will 0.025% on the sale value (excluding brokerage and service tax). And then a small stamp duty and transaction charges are also levied.
2. sgcray's answer is ditto. In fact I would like to ask him (or anybody with knowledge) - how are gains/losses calculated in terms of bonus shares AND stock splits. Because it is seen that when Cos issue bonus share or split their face values, the effective price of shares being traded get reduced. So then how are short and long term capital gains/losses considered?