Yes, the profit from share trading is treated as income unlike long term capital gains. It should be added to any other income after deducting any expense incurred. Income tax is payable as per the different slab rates. Better consult a tax consultant to help you.
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1. This is short term capital gain (stcg)
2. Need to calculate profit/loss statement and then calculate tax as per the prevailing rates. For FY 2009 it is @10%.
3. If you are trading stocks listed on exchanges like BSE, NSE etc then STT is already accounted for. Brokerage needs to be considered for calculations.
Also, you could take a look at a service http://www.stocktaxindia.com which provides precisely this service for exchange listed trading.