Gains made within 12 months of the sale of a stock are short-term capital gains, which are taxed at 15 per cent for investors. For the traders, short-term gains are taxed the same way as long-term gains. In case of a loss, traders can set off/carry forward both short-term and long-term capital losses. In the case of investors, only the short-term capital loss can be carried forward and set off. There is an eight year time limit for setting off capital loss. If you have made profit through day trading, the profit (or loss) from such intra-day trade is treated as speculative activity. So if you make a profit, it will be added to your income and taxed as per your tax slab. A speculative loss can be taken forward for setting off, but within the next four years against speculative income only.
If you are in Future & Options (F&O) market, you are considered a trader. So profits from trading in the F&O market will be considered business income. This will be added to your income under other heads and the total will be taxed at the applicable income tax slab rate.
Caution: Explosive. Handle with care.