Intraday trading, also called day trading, is the buying and selling of stocks and other financial instruments within the same day.
As intra-day trading is settled without actual delivery, it is considered as a speculative transaction. So, Income from intraday trading in shares is treated as speculative business income.
Income from speculative transactions is taxed at slab rates.
As per Section 73, losses from speculation business can be set off only against profit from speculative business unlike loss from other business which can be set-off against the profits of any business. Loss from speculative business cannot be carried forward for more than 4 assessment years succeeding the year in which loss is incurred.