Income tax slab for Indian trader

Income tax for traders in India depends on how they choose to report their income. Here’s a quick breakdown:
Business Income:

  • Regular income tax slabs apply. You can choose between the old tax regime and the new tax regime.
  • Profits are taxed at slab rates ranging from 0% to 30%, depending on your total income.
  • You can claim business expenses to reduce your taxable income.
    Presumptive Taxation Scheme:
  • A simplified scheme with a flat tax rate of 6% of your total turnover.
  • Eligible if your trading turnover is up to ₹2 crore.
  • No need to maintain detailed records of expenses.
    Capital Gains:
  • Short-term capital gains (held for less than 1 year) are taxed at a flat rate of 15%.
  • Long-term capital gains (held for more than 1 year) from equity are exempt up to ₹1 lakh and taxed at 10% above ₹1 lakh.

What tax slab for traders?

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