Income Tax

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Pradip B Vaidya (Querist)
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11 November 2009 My client is investing regularly in MF and is assessed to tax under capital gain upto AY 06-07

In 07-08 number of transactions have increased in mutual funds . Many purchases /sales / swith in and swich out noticed by ITO . The gains /losses shown under capital gain in the return , ITO would like to consider it as business income for the year . Is he correct ?.

Guest

Guest (Expert)

11 November 2009 if the transaction increased its reasonable level i.e. more than 20 pa

then assessing officer has right to treat income as business income.