Tax-Aware Trade Execution

Key Takeaways from this Lesson

1. 1India's 30% flat VDA tax reduces every winning trade by 30% — requiring gross R:R ≥ 2:1 for meaningful net returns.
2. 21% TDS on every sell transaction reduces available capital for re-entry — high-frequency trading amplifies this impact.
3. 3Minimum gross R:R for Indian traders is 2:1 (not 1.5:1) after accounting for tax asymmetry.
4. 4Record every trade with TDS amounts throughout the year to simplify ITR filing.