Short answer — yes. Margin trading gains (including trades done using a broker’s Margin Trading Facility or borrowed funds) have the same broad tax principles as other stock-market profits in India, but there are specific points that matter: how the activity is classified (capital gains vs. business income), whether interest on the margin loan is deductible, STT/reporting, advance tax and tax-audit/recordkeeping requirements. Below I summarize the practical tax implications and what to watch for (with sources).

1. Classification: capital gains vs business income

• If you buy shares on margin and take actual delivery and treat them as investments, gains/losses are taxed as capital gains (STCG or LTCG depending on holding period). (LIVEMINT.com)
• If you trade frequently or the activity is trading/speculation in nature (including many intraday or derivatives positions), income is treated as business income (intraday = speculative business; F&O = non‑speculative business). Many margin‑financed trades by active traders are treated as business income. Business vs investor classification affects tax rate, deductions allowed, and carry‑forward rules. (ClearTax.in)

2. Interest on margin loans — when it’s deductible

• If the activity is treated as business income, interest paid on money borrowed for the business (e.g., margin loan) is generally an allowable business expense under Section 36(1)(iii) and can be deducted from trading income. Keep bills/statements showing interest. (LIVEMINT.com)
• If the transaction is treated as capital investment (capital gains), the deductibility of interest is more restricted/controversial. Practically, many advisers treat borrowing interest linked to acquisition of shares as an expense against business income only; claiming it against capital gains can attract scrutiny. Check case law or get a CA opinion for big amounts. (LIVEMINT.com)

3. Set‑off and carry‑forward rules

• Business losses (including losses from trading treated as business) can generally be set off against other income (except salary) in the same year; unabsorbed business losses can be carried forward (typically up to 8 years) but there are restrictions depending on the nature (speculative vs non‑speculative). (LIVEMINT.com)
• Capital losses follow capital‑gains rules: short‑term capital loss (STCL) can be set off against short‑term or long‑term gains; long‑term capital loss (LTCL) generally only against long‑term capital gains, with carry‑forward up to eight years (some proposed law changes have been discussed — verify current status if relevant). (LIVEMINT.com)

4. Other statutory/compliance points to note

• Securities Transaction Tax (STT) still applies to applicable equity/derivative transactions and impacts net returns (and in some cases affects the computation of certain capital‑gains provisions). Recent legal and policy developments around STT are possible, so monitor official announcements. (timesofindia.indiatimes.com)
• Advance tax: if your tax liability (after TDS) exceeds ₹10,000 in a year you must pay advance tax instalments. Traders are frequently required to pay advance tax. (ClearTax.in)
• Tax audit and books of account: frequent traders/business traders may need to maintain books and get a tax audit under Section 44AB if turnover/limits are exceeded (thresholds differ for types of trading and accounting practices). Opting for presumptive schemes has its own conditions and consequences. (LIVEMINT.com)

5. Practical recordkeeping and filing tips

• Keep detailed broker statements (trade confirmations, contract notes), interest statements from broker, bank statements showing interest paid, STT/charges, brokerage, and any invoices for trading software, courses, etc. These are essential to substantiate deduction claims and for audit. (LIVEMINT.com)
• Decide (and document) whether trading is an “investment” activity or a “trading/business” activity — the tax treatment and allowable deductions flow from that determination. When in doubt or when amounts are material, get a Chartered Accountant’s opinion and report in the correct ITR form (ITR‑2/3/4 as applicable). (ClearTax.in)

6. Actionable checklist (quick)

• Classify your activity (investor vs trader).
• Maintain contract notes, margin/loan interest statements, bank statements and invoices.
• Claim interest only if it is supportable (clearest when income is business income).
• Pay advance tax if required.
• Be aware of tax audit thresholds and file/walk through audit if triggered.
• If you use margin heavily or the amounts are large, consult a CA for structuring and to avoid disputes.

If you want, I can:

• Walk through an example showing tax numbers for a margin‑financed purchase treated as capital gains vs business income, or
• Draft a short list of documents you should collect from your broker and bank for tax filing and audit.

Sources: LIVEMINT, Mint, BusinessToday, ClearTax and other Indian tax guidance summarising Income Tax Act treatment for trading, margin/MTF and interest deduction. (LIVEMINT.com)