Tax on Stock Market Profits in India: 2026 Guide

Making a profit in the stock market does not necessarily mean the entire profit remains with you.

Depending on the type of transaction, stock-market income in India may be treated as:

Capital gains
Speculative business income
Non-speculative business income
Dividend income

You may also encounter transaction-level costs and levies such as:

Securities Transaction Tax (STT)
Stamp duty
GST on eligible brokerage/intermediary services
Brokerage
Exchange and regulatory charges

The first question is therefore not simply:

“How much tax do I pay on stock-market profit?”

The better question is:

“What type of stock-market activity generated the income?”

For a typical Indian investor or trader, the broad framework is:

Delivery-Based Investment → Capital Gains

Equity Intraday Trading → Generally Speculative Business Income

Eligible Exchange-Traded F&O → Generally Non-Speculative Business Income

Dividend → Generally Taxable Income

Tax classification matters because different categories can have different rates, loss set-off rules, carry-forward periods and return-filing requirements.

Tax information last verified: September 11, 2026

Important Tax Disclaimer: This guide is for general educational purposes only. It does not constitute tax, accounting, legal, financial or investment advice. Tax treatment can depend on residency, transaction type, taxpayer status, other income, losses and individual circumstances. Tax laws, forms, rates and procedures can change. Verify the applicable requirements through the Income Tax Department and consult a qualified Chartered Accountant or tax professional when appropriate.

Quick Answer: How Are Stock Market Profits Taxed in India?

For qualifying listed-equity investments subject to the applicable conditions:

Short-Term Capital Gains (STCG)
→ generally taxed at 20%

Long-Term Capital Gains (LTCG)
→ generally taxed at 12.5% on aggregate qualifying gains above ₹1.25 lakh

For trading activity:

Equity intraday trading
→ generally treated as speculative business activity

Eligible exchange-traded futures and options
→ generally treated as non-speculative business activity

Dividends
→ generally taxable in the shareholder’s hands.

The final tax payable can still depend on:

Other taxable income
Loss set-off
Basic exemption adjustment where applicable
Applicable tax regime
Surcharge
Health and Education Cess
Residency
Taxpayer-specific provisions

Therefore:

Headline Tax Rate ≠ Final Tax Liability in Every Case

Important 2026 Update: AY 2026–27 vs Tax Year 2026–27

This is one of the most important points for taxpayers filing returns in 2026.

India’s new Income Tax Act, 2025 came into force from April 1, 2026.

However, that does not mean every return filed after April 1, 2026 automatically falls under the new Act.

Two systems are temporarily relevant.

Income Period	Filing Framework
FY 2025–26 → AY 2026–27	Income-tax Act, 1961
Income earned from April 1, 2026 onward → Tax Year 2026–27	Income Tax Act, 2025

If You Are Filing AY 2026–27

AY 2026–27 relates to income earned during:

April 1, 2025 to March 31, 2026

That return continues to be governed by the:

Income-tax Act, 1961

even though you may actually file the return after April 1, 2026.

If the Income Is Earned From April 1, 2026 Onward

Income earned during FY 2026–27 comes under the new:

Income Tax Act, 2025

The new law uses the term:

Tax Year 2026–27

rather than the older combination of “Previous Year” and “Assessment Year.”

The return for Tax Year 2026–27 will be filed after that tax year ends.

Therefore:

AY 2026–27 ≠ Tax Year 2026–27

They refer to different income periods and different statutory frameworks.

The transition primarily reorganised and simplified the income-tax law and terminology; it should not be interpreted as meaning that every stock-market tax rule changed automatically on April 1, 2026.

Stock Market Tax in India at a Glance

Market Activity	Broad Tax Treatment
Delivery shares held as investment for 12 months or less	Generally STCG
Delivery shares held as investment for more than 12 months	Generally LTCG
Equity intraday trading	Generally speculative business income
Eligible exchange-traded F&O	Generally non-speculative business income
Dividends	Generally taxable in shareholder’s hands
Short-term capital loss	Capital-loss rules
Long-term capital loss	Capital-loss rules
Equity intraday loss	Speculative-business loss rules
Eligible F&O loss	Non-speculative business-loss rules
STT	Separate transaction levy
GST/brokerage/stamp duty	Transaction costs/levies separate from income tax

This article primarily discusses resident individual investors and traders dealing in Indian listed equities and common exchange-traded F&O activity.

Different rules can apply to NRIs, foreign securities, unlisted shares, bonds, debt-oriented investments and other instruments.

Example: How ₹1 Lakh of Stock-Market Profit Can Be Taxed Differently

Suppose four people each make ₹1 lakh from the market.

Their tax treatment can still be very different.

Source of ₹1 Lakh	Broad Treatment
Qualifying listed-equity STCG	Generally subject to 20% special-rate framework
Qualifying listed-equity LTCG	May fall within the aggregate ₹1.25 lakh annual threshold
Equity intraday profit	Generally speculative business income
Eligible exchange-traded F&O profit	Generally non-speculative business income

This is why:

“What is the tax on ₹1 lakh stock-market profit?”

does not have one universal answer.

You first need to identify:

what generated the ₹1 lakh.

1. Tax on Delivery-Based Equity Investments

Suppose you buy shares of an Indian listed company and take delivery of those shares into your demat account.

If those shares are held as an investment or capital asset and later sold for a profit, the gain may generally fall under:

Capital Gains

rather than intraday or F&O business-income treatment.

For qualifying listed equity, the holding period determines whether the gain is short term or long term.

Broadly:

12 months or less → Short-Term

More than 12 months → Long-Term

However, classification can depend on the nature and circumstances of the activity.

Frequent or organised share dealing can raise questions about whether particular activity should be treated as investment or business activity.

Do not automatically apply listed-equity rules to:

Unlisted shares
Foreign shares
Bonds
Debt securities
Every category of mutual fund
Digital assets
Other financial instruments

Their tax treatment can differ.

2. Short-Term Capital Gains Tax on Shares

For qualifying listed-equity transactions satisfying the applicable conditions, shares held for 12 months or less are generally treated as short-term capital assets.

The current special STCG rate is generally:

20%

before applicable surcharge and cess.

STCG Example

Suppose:

Purchase value: ₹2,00,000

Sale value after six months: ₹2,50,000

Ignoring eligible costs for this simplified example:

STCG = ₹50,000

At 20%:

₹50,000 × 20% = ₹10,000

Simplified tax:

₹10,000

before applicable surcharge and cess and subject to the taxpayer’s overall circumstances.

The actual taxable gain can also be affected by applicable transaction costs, loss set-off and other provisions.

3. Long-Term Capital Gains Tax on Shares

For qualifying listed equity held for more than 12 months, the resulting gain may generally qualify as long-term capital gain.

The current framework generally taxes qualifying LTCG at:

12.5%

on aggregate eligible gains exceeding:

₹1.25 lakh

during the relevant year, subject to applicable conditions.

LTCG Example

Suppose your aggregate qualifying LTCG is:

₹3,00,000

Applicable annual threshold:

₹1,25,000

Remaining amount:

₹1,75,000

Simplified calculation:

₹1,75,000 × 12.5% = ₹21,875

before applicable surcharge and cess and subject to the taxpayer’s circumstances.

The ₹1.25 lakh threshold should not be interpreted as a universal exemption for every type of long-term capital gain.

It applies within the relevant qualifying equity capital-gains framework.

STCG vs LTCG on Qualifying Listed Equity

Feature	STCG	LTCG
Typical holding period	12 months or less	More than 12 months
Current special rate	20%	12.5%
₹1.25 lakh annual threshold	No	Yes, for qualifying aggregate LTCG
Subject to relevant STT conditions	Yes	Yes
Lower tax means better investment?	No	No

Tax should not be the only reason for holding an investment.

A poor-quality stock does not become a good investment simply because holding it longer could change its capital-gains classification.

4. Is Dividend Income Taxable?

Yes.

Dividend income is generally taxable in the shareholder’s hands under the applicable income-tax framework.

For resident individual shareholders, the current threshold for company-level TDS on dividend payments is generally:

₹10,000 during the financial year

subject to applicable conditions and exceptions.

This should not be confused with a tax-free limit.

Important Distinction

TDS Threshold ≠ Tax-Free Threshold

Suppose your dividend amount is below the threshold and no tax is deducted at source.

That does not automatically mean the dividend itself is exempt from income tax.

Similarly, if tax is deducted at source:

TDS ≠ Final Tax Liability

The amount ultimately payable or refundable depends on your complete tax computation.

The Income Tax Department’s current materials confirm the ₹10,000 dividend TDS threshold for an individual shareholder.

5. How Is Equity Intraday Trading Taxed?

Equity intraday trading generally means buying and selling shares without taking delivery.

Under the tax framework, transactions in shares settled otherwise than through actual delivery can generally fall within the definition of speculative transactions, subject to relevant statutory exceptions.

Therefore, regular equity intraday trading income is generally treated as:

Speculative Business Income

rather than ordinary capital gains.

Intraday Example

Suppose:

Intraday trading profit: ₹1,50,000

Eligible business expenses: ₹30,000

Simplified net business result:

₹1,20,000

There is no universal rule saying:

“Intraday tax is 20%.”

The ₹1,20,000 generally forms part of the relevant business-income computation.

Your ultimate tax liability can depend on:

Other income
Applicable tax regime
Losses
Deductions where available
Surcharge
Cess
Personal tax circumstances

Therefore:

There Is No Universal Flat Intraday-Trading Tax Rate

6. How Is F&O Trading Taxed?

Eligible derivative transactions carried out on a recognised stock exchange are specifically excluded from the ordinary speculative-transaction definition when the statutory conditions are satisfied.

This means qualifying exchange-traded futures and options are generally treated as:

Non-Speculative Business Activity

This is different from equity intraday trading.

Broad Classification

Equity intraday

→ Generally speculative business income

Eligible exchange-traded F&O

→ Generally non-speculative business income

The Income Tax Department’s current statutory material confirms that eligible recognised-exchange derivative transactions are excluded from the speculative-transaction definition.

Is There a Fixed Tax Rate on F&O Profit?

No.

There is no universal rule such as:

“Every F&O trader pays 20% tax.”

Suppose two traders each make ₹5 lakh from F&O.

Their final tax liabilities may differ because one trader may also have:

Salary income
Rental income
Interest
Capital gains
Other business income
Brought-forward losses

while the other may have a completely different income profile.

F&O business income must therefore be considered within the taxpayer’s complete tax computation.

7. How Are Stock-Market Losses Set Off and Carried Forward?

Loss classification is just as important as profit classification.

You should not mix:

Capital losses
Speculative-business losses
Non-speculative business losses

because the rules differ.

Broad Loss Framework

Loss Type	Broad Set-Off Rule	Typical Carry-Forward Period*
Short-term capital loss	Can generally offset STCG and LTCG	Up to 8 years
Long-term capital loss	Generally LTCG only	Up to 8 years
Speculative/intraday business loss	Generally speculative business profit only	Up to 4 years
Non-speculative business loss, including eligible F&O	Subject to business-loss rules and restrictions	Generally up to 8 years

*Subject to applicable conditions, including return-filing requirements.

The current Income Tax Department material confirms that the 2026 transition retains the broad carry-forward structure: capital losses and ordinary business losses retain eight-year periods, while speculative losses retain four years.

Short-Term Capital Loss

A short-term capital loss can generally be set off against:

STCG

and:

LTCG

Long-Term Capital Loss

A long-term capital loss can generally be set off only against:

LTCG

Therefore:

STCL → STCG + LTCG

LTCL → LTCG only

Intraday Losses

Because equity intraday trading is generally speculative business activity, an intraday loss is generally subject to the rules applying to speculative losses.

Such a loss cannot simply be treated as a capital loss.

Speculative losses are generally more restricted in both set-off and carry-forward.

F&O Losses

Qualifying exchange-traded F&O losses generally fall within non-speculative business-loss treatment.

Business-loss rules differ from speculative-loss rules.

One important restriction is that ordinary business losses cannot simply be used to reduce salary income.

For significant trading losses or mixed income profiles, obtain professional tax advice before filing.

Filing on Time Can Matter

A taxpayer may have a valid loss but still lose the ability to carry it forward if applicable return-filing conditions are not satisfied.

Therefore:

Loss Incurred ≠ Automatic Carry-Forward

Where the law requires timely filing, submit the return within the prescribed timeline to preserve eligible carry-forward rights.

This is especially important for active investors and traders who assume that “no tax is payable because I made a loss,” and therefore do not file a return on time.

8. What Is Tax-Loss Harvesting?

Tax-loss harvesting generally refers to realising an eligible investment loss so it can potentially offset qualifying realised gains under the applicable rules.

Suppose:

STCG = ₹1,00,000

STCL = ₹40,000

Subject to the relevant conditions:

₹1,00,000 − ₹40,000 = ₹60,000

may remain as the simplified net short-term capital gain before the remaining tax computation.

However, tax-loss harvesting is not free money.

Selling investments can create:

Brokerage
STT
Other transaction costs
Market risk
Portfolio changes
Opportunity cost

Tax considerations should be part of the investment decision—not the only reason for it.

9. Tax Rate vs Final Tax Payable

One of the biggest sources of confusion is assuming that the headline tax rate equals the final tax bill.

For example:

STCG rate = 20%

does not necessarily mean:

Final effective tax = exactly 20% of every rupee of gain

Likewise:

LTCG rate = 12.5%

does not mean:

12.5% applies to every rupee of every long-term gain

The final calculation can depend on:

Annual LTCG threshold
Other taxable income
Basic exemption adjustments where permitted
Capital-loss set-off
Business losses
Applicable tax regime
Surcharge
Cess
Residency
Specific statutory provisions

This is why online tax calculators should be treated as estimates unless they accurately incorporate the taxpayer’s complete circumstances.

10. Which ITR Form May Apply?

The correct Income Tax Return form depends on your complete income profile, not simply on whether you own stocks.

For AY 2026–27, the Income Tax Department currently provides the following broad direction.

Situation	Common AY 2026–27 Direction
Otherwise eligible resident individual with specified LTCG up to ₹1.25 lakh	ITR-1 may be available subject to all conditions
Individual/HUF with capital gains but no business/profession income	ITR-2 commonly relevant
Individual/HUF with business or profession income	ITR-3 commonly relevant
Eligible presumptive taxpayer	ITR-4 only where all specific conditions are satisfied

The Income Tax Department currently describes ITR-2 as being for individuals and HUFs without business/profession income, while ITR-1 for AY 2026–27 permits an otherwise eligible resident individual to report specified LTCG up to ₹1.25 lakh.

Important 2026 Filing Warning

These are AY 2026–27 forms, covering income earned during FY 2025–26 under the Income-tax Act, 1961.

Do not assume that the same form structure will automatically apply when filing the return for:

Tax Year 2026–27

in 2027 under the Income Tax Act, 2025.

Use the forms actually notified for the relevant filing year.

Which ITR Is Commonly Relevant for F&O or Intraday Traders?

Because intraday and eligible F&O income are generally treated under business-income rules, an individual or HUF with such business income commonly needs to examine:

ITR-3

subject to complete eligibility and income circumstances.

ITR-4 may apply only where the taxpayer genuinely satisfies the relevant presumptive-tax and other eligibility conditions.

Do not choose an ITR form based solely on one online article.

11. Do F&O Traders Automatically Need a Tax Audit?

No.

An F&O loss does not automatically mean:

Tax audit required

Tax-audit applicability can depend on factors including:

Turnover
Applicable statutory thresholds
Nature of receipts/payments
Presumptive taxation provisions
Income declared
Previous tax treatment
Taxpayer circumstances

Therefore:

F&O Loss ≠ Automatic Tax Audit

Similarly:

F&O Profit ≠ Automatic No-Audit Situation

Where trading activity is substantial, turnover should be calculated correctly and current audit requirements should be reviewed with official guidance or a qualified Chartered Accountant.

F&O Turnover Is Not the Same as Contract Value

This is another common misunderstanding.

Suppose you buy and sell derivatives with a large notional value.

The total notional contract exposure is not automatically the same as:

tax turnover

Therefore:

₹1 crore notional derivative exposure ≠ automatically ₹1 crore F&O tax turnover

Turnover methodology can matter for:

Tax audit
Books of account
Presumptive taxation
Return preparation

Because incorrect turnover calculations can affect compliance, avoid relying only on the contract value shown by a trading platform.

12. Can Traders Claim Business Expenses?

Where trading activity is correctly treated as business income, expenses incurred wholly and exclusively for the business may potentially be considered according to applicable tax rules.

Depending on the facts, these might include eligible portions of:

Brokerage and transaction-related costs
Data subscriptions
Trading software
Internet costs
Professional fees
Depreciation on qualifying business assets

But:

Trading-Related Claim ≠ Automatically Deductible Expense

The expenditure must satisfy applicable tax requirements and should be properly documented.

Personal expenditure should not be converted into a trading-business expense simply to reduce taxable income.

13. STT, GST, Stamp Duty and Brokerage

Income tax is not the only cost associated with stock-market activity.

Securities Transaction Tax — STT

STT is a statutory levy applying to specified securities transactions.

The rate and taxable value depend on the instrument and transaction.

STT treatment can differ among:

Delivery equity
Intraday equity
Futures
Options
Other specified securities transactions

STT should not be confused with tax on profit.

STT ≠ Capital Gains Tax

STT ≠ Business Income Tax

Stamp Duty

Stamp duty is another statutory transaction levy.

For exchange transactions, collection and applicable rates depend on the nature of the security and transaction.

GST

GST is not simply charged on your stock-market profit.

It can apply to eligible brokerage and intermediary services and associated taxable charges.

Therefore:

GST on Brokerage/Services ≠ GST on Investment Profit

Brokerage

Brokerage is a fee charged by the broker.

It is not a government tax.

The amount can depend on:

Broker
Product
Order type
Pricing plan

Other Charges

Contract notes can also contain exchange, regulatory or clearing-related charges.

An active trader should evaluate:

Gross Trading Profit − Transaction Costs − Applicable Taxes = Actual Economic Result

rather than looking only at the headline P&L.

14. Records Investors and Traders Should Maintain

Accurate records make tax computation and reconciliation much easier.

Useful documents can include:

Broker tax P&L statement
Capital-gains statement
Contract notes
Trading ledger
Demat statement
Bank statements
Dividend records
Business-expense invoices
F&O turnover workings
Tax-payment records
Previous returns
Brought-forward loss details

Do not wait until the filing deadline to reconstruct an entire year of market activity.

AIS, TIS and Form 26AS

Depending on the reporting framework, stock-market and tax information may appear in:

Annual Information Statement — AIS
Taxpayer Information Summary — TIS
Form 26AS

These can help with reconciliation.

But remember:

Broker P&L ≠ Automatically Final Tax Return

and:

AIS ≠ Automatically Final Tax Calculation

If records disagree, investigate the difference rather than blindly copying one source.

15. Common Stock-Market Tax Mistakes

Treating Intraday Profit as Ordinary Capital Gain

Equity intraday activity is generally treated differently from delivery-based capital gains.

Treating Eligible F&O as Speculative Business

Eligible exchange-traded derivative transactions are generally excluded from speculative treatment.

Assuming Every Short-Term Share Gain Is Automatically 20%

The special rate applies to qualifying transactions meeting the applicable conditions.

Applying the ₹1.25 Lakh Threshold to Every LTCG

The threshold applies within the relevant qualifying listed-equity/equity-oriented framework.

Assuming F&O Has a Fixed 20% Tax Rate

F&O business income does not have one universal flat tax rate for every individual trader.

Assuming F&O Loss Automatically Means Tax Audit

Audit applicability requires a separate analysis.

Confusing F&O Contract Value With Turnover

Notional exposure and tax turnover are not automatically identical.

Forgetting Dividend Income

Dividend income can be taxable even when received automatically into a bank account.

Treating the ₹10,000 Dividend TDS Threshold as Tax-Free Income

A TDS threshold and final taxability are different concepts.

Assuming TDS Equals Final Tax

TDS is a withholding mechanism.

Using the Wrong Loss Set-Off Rule

Remember:

STCL → STCG + LTCG

LTCL → LTCG only

Speculative loss → generally speculative profits

Filing Late After Incurring Losses

Late filing can affect carry-forward eligibility for certain losses.

Filing the Wrong ITR

Capital-gains investors and business-income traders may require different forms.

Using AY 2026–27 and Tax Year 2026–27 Interchangeably

They refer to different income periods.

This is especially important during the 2026 transition.

Can You Legally Reduce Tax on Stock-Market Profits?

Tax planning is legal.

Tax evasion is not.

Legitimate tax planning may involve:

Correct loss set-off
Carrying forward eligible losses
Keeping records of genuine business expenses
Considering holding periods before discretionary investment sales
Tax-loss harvesting where appropriate
Filing returns within required timelines
Avoiding unnecessary transaction churn

But do not make poor investment decisions purely to save tax.

Losing ₹100 simply to save a fraction of ₹100 in tax does not create wealth.

Frequently Asked Questions

How are stock-market profits taxed in India?

It depends on the activity.

Delivery-based shares held as investments may generate capital gains. Equity intraday activity is generally speculative business income. Eligible exchange-traded F&O is generally non-speculative business income. Dividends are generally taxable in the shareholder’s hands.

What is the STCG tax rate on shares in 2026?

For qualifying listed-equity transactions satisfying the applicable conditions, the current special STCG rate is generally 20%, before applicable surcharge and cess.

What is the LTCG tax rate on shares?

Qualifying long-term listed-equity gains are generally taxed at 12.5% on aggregate eligible gains exceeding ₹1.25 lakh, subject to applicable conditions.

How long must listed equity be held for LTCG?

For qualifying listed-equity shares, holding the shares for more than 12 months generally results in long-term classification when held as capital assets.

Is ₹1.25 lakh of every long-term capital gain tax-free?

No.

The ₹1.25 lakh threshold relates to the relevant qualifying listed-equity/equity-oriented capital-gains framework.

Is intraday trading taxable?

Yes.

Equity intraday trading is generally treated as speculative business activity for tax purposes.

Is there a fixed intraday tax rate?

No.

The business-income treatment means the final liability depends on the taxpayer’s overall tax computation.

Is F&O income taxable?

Yes.

Eligible recognised-exchange F&O activity is generally treated as non-speculative business activity.

Is F&O taxed at 20%?

There is no universal flat 20% F&O tax for every individual.

The final tax depends on the complete taxable income and applicable framework.

Is F&O speculative income?

Eligible derivative transactions on recognised exchanges satisfying the statutory conditions are generally excluded from the speculative-transaction definition.

Do I need a tax audit if I have an F&O loss?

Not automatically.

Audit applicability depends on turnover and other tax provisions.

Can F&O losses be carried forward?

Eligible non-speculative business losses can generally be carried forward subject to applicable conditions and filing requirements.

Can an intraday loss be adjusted against F&O profit?

Equity intraday losses are generally speculative losses, while eligible F&O is non-speculative business activity.

Speculative losses have more restrictive set-off rules, so the two should not be assumed to be freely interchangeable.

Can short-term capital loss offset LTCG?

Generally, yes.

A short-term capital loss can generally be set off against both short-term and long-term capital gains.

Can long-term capital loss offset STCG?

Generally, no.

A long-term capital loss is generally set off only against long-term capital gains.

How long can capital losses be carried forward?

Eligible capital losses can generally be carried forward for up to eight years, subject to applicable conditions.

How long can speculative intraday losses be carried forward?

Speculative losses generally have a four-year carry-forward period, subject to applicable conditions.

Is dividend income tax-free?

No.

Dividend income is generally taxable in the shareholder’s hands.

What is the current dividend TDS threshold for an individual shareholder?

The current threshold is generally ₹10,000 during the financial year, subject to applicable conditions and exceptions.

The threshold determines TDS applicability; it does not make the dividend tax-free.

Is STT the same as income tax?

No.

STT is a separate transaction levy.

Is GST charged on stock-market profit?

GST is not simply levied on your trading or investment profit. It can apply to eligible brokerage/intermediary services and related taxable charges.

Which ITR should a stock investor use for AY 2026–27?

An individual/HUF with capital gains but no business/profession income commonly examines ITR-2 eligibility. ITR-1 may be available to an otherwise eligible resident individual with specified LTCG up to ₹1.25 lakh, subject to all other conditions.

Which ITR is commonly relevant for an F&O trader?

An individual/HUF with business income from F&O or intraday trading commonly examines ITR-3 eligibility.

Does the Income Tax Act, 2025 apply to AY 2026–27?

No.

AY 2026–27 covers FY 2025–26 and continues under the Income-tax Act, 1961.

What is Tax Year 2026–27?

Tax Year 2026–27 refers to income earned during FY 2026–27, beginning on April 1, 2026, under the Income Tax Act, 2025.

When will the return for Tax Year 2026–27 be filed?

The return obligation arises after Tax Year 2026–27 ends.

Do not confuse it with the AY 2026–27 return being filed during 2026.

Can I avoid tax by leaving profit in my brokerage account?

Not necessarily.

Tax treatment generally depends on the underlying taxable transaction and income classification, not simply whether cash has been withdrawn from the broker.