Does Profit Percantage Matter?

Does it matter if a trader makes say 100 Rs money from intraday trades (or short term) with traded value of over 1 Lakh, about (0.1%) after deducting brokerage and other charges & if this happens almost everyday ? I know that the profit percentage of such trade is very low, but does that cause any implication from tax point of view or any other view to this?



Staff member
There is no income tax implication of low profit margins in stock trading.

However such low margin trading is very risky as one wrong trade can wipe-out profits of entire week or month.

Traders should try and develop trading techniques where the profit margin is high.