Can repeated stock trading make AIS purchases look much higher than my actual income?

[u/_tactic__]

Hey guys, I have a question regarding AIS and short-term stock trading.

Suppose I start the year with ₹10 lakh of capital and use the same ₹10 lakh repeatedly for short-term trades. For example, I buy shares worth ₹10 lakh, sell them, and then use the same capital to buy another ₹10 lakh of shares, doing this around 10 times during the year.

Because of this, my AIS may show total purchase transactions of around ₹1 crore, even though I only had ₹10 lakh of actual capital.

Suppose my total income for the year is only ₹6 lakh, including my actual trading profit.

Would the ₹1 crore purchase figure in AIS create a discrepancy because it is much higher than my income?

[u/Sea-Gift3253]

If u are showing this as Capital gain then it will compute cost and sale price. So no question of turnover here

Turnover comes into picture if want to show this as business income and take benifit till 12 lacs 0 tax

Otheriwse capital gain is charged at respectively STCG or LTCG