Share purchase with intend to sale in short period

This query is : Resolved

nilesh Waghela (Querist)
Follow

17 July 2010 if,

any individual purchases share with intend to sale in short period,that is within 2 or 3 days.

Can we say that it's held for sale that is for doing a business & taxable under business & profesion head or,

it's short term capital gain as the delivary is taken and speculation profit when dilivary is not taken

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
Follow

19 July 2010 Puchase and sale of ahres by an individual deoend on many factors, such as volume of transaction, borrowed or own capital etc.

But generally profit earned on sale of shares by an individual is treated as short/long term capital loss/ gain. In your case, it should be short term gain/loss.

Further if loss/profit is made by an individual without delivery of shares, it will be speculative profit/loss.

nilesh Waghela

nilesh Waghela (Querist)
Follow

20 July 2010 if,

An Individual buying & selling in bulk & also daily he involve in share transaction through ragistared share broker.

then

can we say that its a business?

if yes, kindly give any section or case in which it's mention or judgement given.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now