Profit on sale of shares taxable under which head

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kusum (Querist)
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17 September 2008 Is there any criteria for treating profit on sale of shares on which STT paid as business income of capital gain since there is huge difference in tax rates relate to both head. Quote case law or related section if any.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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17 September 2008 In case it is the adventure in the nature of trade then treat it as Income from Business & Profession otherwise Capital Gains. Basiclly the transactions may be covered as Adventure in the nature of trade if the volume of transactions is large and the intention for transacting is not for investment.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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17 September 2008 If the volume of transaction is on day to day basis i.e Like jobbing than it should form part of business income otherwise if deliveries given at time of sale and taken at time of purchase than it will be in the nature of investment and it will be covered under capital gain

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CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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18 September 2008 Even the profit or loss from delivery transactions can be covered under the head of Business Income on the basis given in my earlier reply as per above.