Non-speculative income- (Intraday вЂњF&OвЂќ trades): This is so because those investing in a stock for less than a day are presumably not investing in the company but only keen on speculating its price volatility to turn a profit. Profits made from intraday trading of equity shares are classified as speculative income. Speculative incomeвЂ“ (Intraday вЂњEquityвЂќ Trading): Types of business income from Intraday Trading 1. Loss from Intraday Trading will be considered as Speculation Loss 3. Profit from Intraday Trading will be considered as Speculation Gain вЂњ Profits & Gains from Business or ProfessionвЂќ (section 43(5) of the Income Tax Act) Hence income from Intraday is considered as Business Income. Intraday trading is not an Investment but more of business-like activity.The trader does not take the actual delivery of shares.Every intraday trade needs to be closed by the end of the day even if the desired price has not been achieved.Traders earn money by buying or selling stocks and derivatives on the same day from price fluctuations at a given point of time during the operation of the stock market.Intraday Trading refers to a single day trading in a stock market.Who performs tax audits for intraday trading? Applicability of Tax Audit for Intraday Trading Calculating Turnover for Intraday Trading As Per Income Tax Calculation of Income Tax on Intraday Trading Types of business income from Intraday Trading