Intraday trading tax
Tax Treatment of Income from Intraday Trading If you hold stock for less than 365 days than it falls under the category of short term capital gains. The rate of tax here is 15%. Here, the delivery of shares must go directly into your demat account. Intraday income tax will depend on which category you fall into, ‘trader’ or ‘investor’. Unfortunately, as an IRS spokesman pointed out, “The question is clear; the answer isn’t.” So, you’ll need to follow the guidelines set out in the 70,000 page long tax code and take into account decisions in relevant case law.