How are intraday trading profits taxed in India?

Intraday equity trading profits are classified as speculative business income under Indian income tax law, since you’re buying and selling within the same day without ever taking delivery, and it’s taxed at your applicable income tax slab rate rather than under capital gains rules that apply to delivery-based equity investing. This is an important distinction from delivery trading: intraday profits get added to your total income and taxed progressively based on your overall tax bracket, and importantly, speculative losses from intraday trading can only be set off against speculative gains, not against other business income or capital gains, and can be carried forward for a limited number of years if not fully offset in the same year. You maintain a full record of every intraday trade, since speculative business income also requires proper turnover calculation and, in some cases depending on turnover level, a tax audit requirement under the Income Tax Act. You’d generally recommend consulting a chartered accountant familiar with trading income specifically, since the turnover and audit rules have enough nuance that a general understanding isn’t always sufficient for accurate filing.