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.
