30 November 2009
Can capital gains on sale of shares be treated as business income by Assessing officer if it is only income of assessee ? Can u quote any case law / circular in this matter. All shares are delivery based and intension was to make investment.
30 November 2009
It depends on how often u do transactions of shares and r u purchasing the shares and securities as an investment or stock in trade. If it is done on a regular basis , and is the only source of income than ofcourse it is assessable as business income.
30 November 2009
Does person only has capital Gain income is determining point to treat it as business income ? Please quote any reference to case law or circular/notification by department.
01 December 2009
Capital gain income is totally different from business income. If you see the meaning of short term capital gain that is depend on time period for holding the capital assest. And in case of share holding period is counted less than one year for STCG. Period of less than one year may be even one day. Further, whether you transact on regular basis or for investment purpose. Gain arises on this to be taxed under 'Income from Capital Gain' rather business income.
11 December 2009
It is depend on the volume of the transactions. CBDT has issued a notification regarding this and has given guidelines to AO, has to treat the cases of share tradings. Kindly go through that notification.Thanks
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