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Key takeaways
- Muhurat trading: Sunday 8 November 2026, from about 2:20 pm.
- Intraday = speculative income; delivery = 20% STCG or 12.5% LTCG above ₹1.25 lakh; F&O = business income.
- No special Diwali tax benefit; gifts of shares to relatives are not taxed.
Date and time: Sunday, 8 November 2026 (Diwali, Laxmi Pujan). The main equity session starts at about 2:20 pm IST after a pre-open from about 2:05 pm, per the exchanges’ circulars of 19 October as reported by brokers. Closing times differ between reports, so check the NSE or BSE circular before you trade.
How Muhurat trades are taxed
| Type of trade | How it is taxed | Watch out |
|---|---|---|
| Intraday (bought and sold the same day, no delivery) | Speculative business income, taxed at your slab rate | Speculative losses can be set off only against speculative income; carry forward 4 years |
| Delivery purchase, sold within 12 months | Short-term capital gain at 20% plus cess | The 12 months start from the purchase date (8 November) |
| Delivery purchase, sold after 12 months | 12.5% on long-term gains above ₹1.25 lakh a year | The ₹1.25 lakh exemption is shared across listed shares and equity funds |
| Futures and options | Non-speculative business income at your slab rate | Reported in ITR-3; turnover can trigger a tax audit |
Muhurat trades are ordinary trades for tax: there is no special Diwali rate or exemption, and securities transaction tax applies as usual.
Gifting shares on Diwali
- Shares gifted by a relative are not taxed in the hands of the person receiving them.
- Gifts from friends and others are taxable income if their total value in the year exceeds ₹50,000.
- When the gift is later sold, the giver’s purchase price and holding period carry over.
Work out your tax
Use the free IPO and listed-share tax calculator for short- and long-term gains, or the gold tax calculator if you are buying gold for Dhanteras on 6 November. NRIs trading through PIS accounts pay the same rates, with tax deducted by the broker: see NRIs and Indian shares.
Sources
Frequently asked questions
When is Muhurat trading in 2026?
On Sunday, 8 November 2026, for Diwali. The main equity session starts at about 2:20 pm IST after a pre-open from about 2:05 pm, as reported from the exchanges' circulars; check NSE or BSE for the exact closing time.
How is Muhurat trading profit taxed?
Like any other trade. Intraday profit is speculative business income at your slab rate; shares bought for delivery and sold within 12 months are taxed at 20% as short-term capital gains, and after 12 months at 12.5% above ₹1.25 lakh a year; F&O profit is business income.
Is there any tax benefit for Muhurat trading?
No. There is no special rate or exemption for trades in the Diwali session; securities transaction tax and the normal rules apply.
Is gifting shares on Diwali taxable?
Not if the shares go to a relative. Gifts from non-relatives are taxable for the recipient if their total value in the year exceeds ₹50,000.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.