Finance, Forex and Investments - What are the Tax issues that may arrise in case of online share trading in india through SBI's E-Z trade?

What are the Tax issues that may arrise in case of online share trading in india through SBI's E-Z trade?

Capital asset is divided as short term or long term with reference to the period of holding of the asset by the assessee. Shares or any other security held for not more than 12 months are short term capital asset and held for more than 12 months are Long term capital asset . Short term capital gains arising on sale of equity shares through recognized stock exchange is subject to tax @ 15% if such transaction is chargeable to Securities Transaction Tax ( STT). Long term capital gains arising on sale of equity shares is exempt if such transaction is chargeable to STT. Any income by way of Dividends from a company are exempt.
This activity can either be classified as Trading or Investment, day trading or delivery based. Income from Trading is Buisiness Income, which is added to your Gross Income. Income from Investments is either STCGs or LTCGs. STCGs are taxed @ 15%. LTCGs are tax exempt. Since companies pay DDT, the dividends are tax free.