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Taxation

Taxation of stock market income in India, explained simply

8 May 2026 · 7 min read

Taxation of stock market income in India, explained simply

Delivery-based equity held over twelve months is long-term capital gain. Held under twelve months it is short-term capital gain and taxed at a higher rate.

Intraday trading is speculative business income. Futures and options are non-speculative business income, which allows expense deductions and different loss set-off rules.

Keep your broker's profit and loss statement, contract notes and the annual tax report. Reconcile them with your AIS before filing.

Talk to a chartered accountant for your own case; this is general information rather than tax advice.

This article is for education only and is not investment advice. Securities markets carry risk; please read all scheme and offer documents carefully.

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