income tax on trading in shares/stocks
This query is : Resolved
27 March 2008
what is the procedure for distinguishing Share s trading income to be taxed as business income and Capital gains Income?
27 March 2008
Here intention of the assesses has to look into , if he is acquiring the share for trading purpose then it will be taxable under business head, if they are acquiring with the intention of holding for certain period or there intention is not as per above then it will be taxable under the head of capital gain.
27 March 2008
In addition to intention of the assessee,department can look into the nature,frequency of transactions and accordingly decide the nature of income.
27 March 2008
VOLUME OF TRANSACTIONS, FREQUENCY OF TRANSACTIONS, AND THE REAL MOTIVE OR OBJECTIVE OF THE INVESTMENT WHETHER IT IS TRADING PURPOSE OR INVESTMENT PURPOSE ARE ALL LOOKED INTO TO DECIDE THE NATURE OF INCOME TO BE TREATED AS BUSINESS INCOME OR CAPITAL GAIN .
R.V.RAO
R.V.RAO
27 March 2008
The following factors would be relevant collectively not in isolation-
1 Period of holding
2 Frequency
3 Motive Of Purchase
4 Source of acquisition - whether out of own capital or out of borrowed money
5 resources employed
6 relation with other activities
1 Period of holding
2 Frequency
3 Motive Of Purchase
4 Source of acquisition - whether out of own capital or out of borrowed money
5 resources employed
6 relation with other activities
28 March 2008
ALL THE ANSWERS ARE CORRECT
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- SEC 54 OF IT ACT
- Form 26QB for TDS on property
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- REGARDING GST ON COMMERICIAL PROPERTY
- Payable outstanding for years disallowance
- DTCP approval
- Partnership Business Can start India (two partners one is Indian and OCI both are wife and Husband)
- BLOCKED-INELIGIBLE GST CREDIT
- Amendment of September 2021 Invoice
- PAYMENT NOT SEND IN 180 DAYS
- Consequences of short and excess provision of expenses
- Provision for income tax and adjustment entry
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
