Answer

ITR

Intraday equity trading is speculative income

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

  1. Facts

    Intraday trading in shares without delivery is a speculative transaction under Sec 43(5) of the 1961 Act. Profit is speculative business income in ITR-3, taxed at slab rates.

  2. Provisions and law

    • Sec 43(5), Income-tax Act 1961Defines speculative transactions; derivatives on recognised exchanges are not speculative (2025 Act number to be confirmed)
    • Sec 73, Income-tax Act 1961 (now Sec 113, Income-tax Act 2025)Speculation loss is set off only against speculation income and carried forward for 4 years

  3. Analysis

    Speculative income is kept separate from F&O business income. Example: intraday profit ₹60,000 and F&O loss ₹1 lakh; the F&O loss can be set off against the intraday profit, but an intraday loss could be set off only against speculative income. Speculation losses carry forward for 4 years under Sec 73 (now Sec 113).

  4. Conclusion

    1. Separate intraday trades from delivery and F&O trades in the broker report
    2. Compute speculative profit or loss
    3. Report it in ITR-3 under speculative business
    4. Carry forward any loss in the return filed on time

A Savvy can do this for you

Business or professional income return, ITR-3 (including F&O and intraday)

₹4,999

Get this doneAsk a Savvy on WhatsApp

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

People also ask