Ektaca
Chartered Accountant

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In case of an individual who is investing in shares & doing day trading i.e. non delivery based trading then will this be treated as sale and purchases. The amount paid or recd is the net profit or loss during the day.Will these transaction will be treated as sale & purchase. If the sales exceeds 40 lacs will The individual will be applicable for tax audit Though we are paying or receiving the net amount.
From India , Mumbai
Hi,
Yes, even if you do non-delivery based transactions, it will be treated as normal sale and purchases. If you are doing this transaction on securities you already have in your portfolio then the long/short term capital gains will be calculated on FIFO basis, i.e. respective purchase date and price of your earlier transaction.
The regulatory requirement is on the turnover i.e. total sale/purchase and not on the net value of transaction, so the 40 Lacs limit will apply.
Regards
Manish

From India , New Delhi
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