Muhurat trading is the one-hour session that the NSE and BSE hold on Diwali evening to mark the start of the new Samvat year. Many investors buy a few shares as a token of good luck. Those trades are real trades, and they are taxed like any other trade.
Muhurat trading 2026 timings
| Session | Time (IST) |
|---|---|
| Pre-open session | 2:05 PM to 2:20 PM |
| Normal market (most stocks) | 2:20 PM to 3:30 PM |
| Normal market for stocks in the closing auction | 2:20 PM to 3:15 PM |
| Closing auction session | 3:20 PM to 3:35 PM |
| Equity futures and options | 2:20 PM to 3:40 PM |
These timings are as reported by brokers from the exchange schedule. Some newly listed and thinly traded shares follow their own windows.
Are Muhurat trades real trades?
Yes. A share you buy in the Muhurat session is bought at the market price, settled through the clearing corporation and credited to your demat account like any other purchase. If you sell a share in the session, you must deliver it. Because 8 November is a Sunday and Govardhan Puja follows, the settlement date can shift with the exchange holiday calendar, so do not plan on using the money the next morning.
How Muhurat trades are taxed
A trade made on 8 November 2026 falls in Tax Year 2026-27, the first year under the new Income-tax Act, 2025. The session does not get any special tax treatment. The tax depends only on what kind of trade it is.
| Type of trade | How the profit is taxed |
|---|---|
| Intraday equity (bought and sold the same day) | Speculative business income, taxed at your slab rate. A speculative loss can be set off only against speculative income. |
| Futures and options | Non-speculative business income, taxed at your slab rate. You may need to work out turnover for tax audit. |
| Delivery shares sold within 12 months | Short-term capital gain, taxed at 20%. |
| Delivery shares sold after 12 months | Long-term capital gain, taxed at 12.5% on the part above ₹1.25 lakh in the year. |
Securities transaction tax, stamp duty and exchange charges apply in the Muhurat session exactly as they do on any other day. Brokerage is not deductible against capital gains on delivery trades, but it is an expense when the income is business income.
Three practical points
- Do not trade only because it is auspicious. Volumes are thin and prices can swing sharply in a one-hour session. A limit order protects you from a bad fill.
- Keep the contract note. Your broker's capital gains statement will include it, but the contract note is your proof of cost if you sell years later.
- Record intraday and F&O separately. Many retail investors mix them up in the return and receive a mismatch notice. Our note on the Income-tax Act, 2025 explains what changed in the forms from April 2026.
Frequently asked questions
What is the date of Muhurat trading 2026?
Muhurat trading 2026 is on Sunday, 8 November 2026, the day of Diwali Lakshmi Puja.
What are the Muhurat trading timings in 2026?
The pre-open session runs from 2:05 PM to 2:20 PM and the normal market runs from 2:20 PM to 3:30 PM IST. Equity derivatives trade until about 3:40 PM. Check your broker's app for its own cut-off times.
Is profit from Muhurat trading taxable?
Yes. Muhurat trades are taxed like any other trade. Intraday profit is speculative business income, F&O profit is business income, and delivery shares attract short-term or long-term capital gains depending on how long you hold them.
Do I get the shares I buy in Muhurat trading?
Yes. They are settled through the clearing corporation and credited to your demat account. Settlement can take a little longer because of the holidays around Diwali.
How Vitt-Marg helps
We handle income-tax returns, capital gains computation, tax planning, GST and ROC compliance for individuals, businesses and companies across Noida, Ghaziabad and Delhi NCR. Send us your broker statements or documents and we will tell you exactly what you owe and how to file it correctly.
General information, current as of 6 November 2026, not advice for a specific case. Due dates and fees change with MCA and CBDT notifications. Check with us before acting on it.