Delivery Based Transaction
Non Delivery Based Transaction
It is also divided into 2 further categories – i) F&O, ii) Intraday
Futures and Option (F&O)
F&O means – Future is contract where at the predeterimned price, a person can buy or sell an underlying stock or other assets on a specific date. Whereas, the Option are the contract that provides an investor a opportunity as a right not an obligations to buy or sell the stock and assets at a specific price on a specific date.
In the case of F&O Transaction, the income earned from this transaction will be termed as Normal Business Income.
An ITR-3 is required to file by the individuals.
Intraday
As word Intraday speaks itself which means “within the day”. The term used to tell that the securities that trade on the share market on daily basis.
In the case of Intraday transactions, the income earned from this transaction will be called Speculation Business.
In this case, ITR-3 is required to file.
Other Conditions
One can also opt for Presumptive Taxation Scheme in case of Business of Share Trading. ITR-4 is to be filed if the conditions of using the form are fulfilled.
Capital Gain can be Long Term (more than 1 year) or Short term (less than 1 year).
