Query on Capital Gain : Profit or gain from transaction of derivatives will be taxed under the head, ‘Profit and gain of business or profession' or ‘Capital gain', which depends on the nature of the asset held by a person. The dividing line is very thin. The issue should be determined by facts and circumstances of each case. Hence, it has to be decided by considering some of the relevant factors such as the length of the holding period, intention, regularity or frequency, source of funds, the administrative set-up, use of the sale proceeds, circumstances leading to the sale, accounting treatment, manner of acquisition, proportion of such income, and the overall time devoted for the activity. In you case looking at the quantum of transactions and and other facts you can treat it as a short term capital gain and adjust this gain against loss on equity trading as your intention may not be of a business man its more of an investor . Hence, you dont need to pay any capital gain tax. Further you are eligible to carry forward loss of Rs. 40000 to next assessment year which can be adjusted against next year's capital gain.