Tax treatment for a full time stock trader

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  1. SL74

    SL74 New Member

    I am a full time independent stock trader, trading in equity derivatives. My total income consists of -

    1. Business income from trading equity derivatives (have a trading account on NSE/BSE and a demat account)

    2. Income from my long term investments in equities (stocks) and mutual funds (both equity and debt)

    3. Interest income from fixed deposits and savings accounts

    4. Intermittent income from freelance writing that I do for an educational institute (writing papers)

    5. Royalty income from a book

    How should each of these categories be reported for taxation purposes ?

    Currently, I report No. 1 as business income, No. 4 as other income, No. 5 as royalty income, and No. 2 as capital gains (long and short term depending upon holding period and asset type), and N0. 3 as interest income.

    My main concern is should No. 2 be treated as business income also, since my work is in a related field ?

    Any advise is much appreciated. Thanks in advance.
    Last edited: Aug 26, 2016
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