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Tax Planner

What is speculative (intraday) income?

Why same-day buy-and-sell cycles are taxed as business income (PGBP), not capital gains.

Updated 23 Jul 2026

Buy a stock and sell it the same day, and the tax rules stop treating it as an investment altogether. Those same-day round-trips are speculative business income, and the Tax Planner pulls them into their own section so they never get mixed up with your capital gains.

Why it's a different bucket

A same-day BUY+SELL cycle is PGBP (ITR-3 Schedule BP) — profits and gains of business, not capital gains. That means it's taxed at your slab rate, not the fixed LTCG/STCG percentages, and it files on a different part of your return. Any holding with same-day cycles picks up an Intraday badge so you can spot it.

The Speculative Business Income section lists each same-day cycle, kept separate from LTCG and STCG.

How losses work here

Speculative income has its own walls. A speculative loss can only offset speculative gains — never your salary, never your capital gains. So a bad day of intraday trading can't reduce the tax on the stocks you're holding for the long run.

Note: ProjectionWealth flags and separates these cycles so your capital-gains numbers stay clean, but intraday taxation gets involved fast — turnover, audit thresholds, ITR-3. For the filing itself, talk to a CA.

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