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
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
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