Income Tax on Stock Market Trading: Intraday, F&O, Delivery

Understanding tax on stock market profits including intraday, F&O, delivery-based trading. Short-term vs long-term capital gains.

GetYourCA Team

|1 April 2025·Updated 9 April 2026|1 min read|12.5K views

"Stock Market""Trading Tax""F&O""Capital Gains"

Income Tax on Stock Market Trading

Types of Trading#

Intraday Trading#

Buy and sell same day
Speculative business income
Taxed as per slab rate

F&O Trading#

Futures and Options
Non-speculative business income
Taxed as business income

Delivery-Based Trading#

Shares held for days/months
Capital gains treatment

Tax Treatment#

Short-Term Capital Gains#

Holding < 12 months (equity)
15% tax on profit
STT must be paid

Long-Term Capital Gains#

Holding > 12 months
10% on gains above ₹1 lakh
STT must be paid

Loss Set-off#

F&O loss set off against business
Can carry forward 4 years
Cannot set off against salary

Conclusion#

Know your trading type for correct tax treatment.

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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