How Income Tax applies on equity trading?

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  1. Ravindra Naidu

    Ravindra Naidu New Member

    If we do general equity trading,

    1) Will there be TDS applied upon getting profit, so that the individual investor need not to bother about paying taxes? or Should the individual investor pay the tax for the profit to the government through online?

    2) How about tax implications in case of loss?

    3) Can loss be shown as tax benefit in India like US?
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    1. TDS is not required to be deducted on Equity Trading. The investor himself has to pay tax on the capital gains from trading.
    2. In case of loss - the loss can be set-off against the profit and only the effective profit during the year would be taxable.
    3. Yes, Loss can be shown as a Tax Benefit by adjusting it with Capital Gains.
    Ravindra Naidu likes this.
  3. Ravindra Naidu

    Ravindra Naidu New Member

    Thanks Gaurav.

    What if we there is no profit and only loss? Can loss be shown as tax benefit?
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    In case their is no profit but only loss, the loss would be carried forward to the next year and set-off against profit of next year. The loss can be carried forward for a maximum of consecutive 8 years.

    For more details, kindly refer:
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