one client doing and making investment in share market. and every year he receive some capital gain in share market. i.e. short term capital gain...
i have read somewhere that if any assessee is doing regular transaction in share market i.e. delivery that than assessee income fall under the head business in profession not capital gain ???
20 July 2010
Yes.. Business includes trading, goods include shares & stocks, hence buying & selling i.e. trading in shares can be considered a business.
It depends on the purpose & frequency of transactions. If your client regularly trades in stock market with high volume of transactions & shows income as STCG, the IT Dept. can deny the claim & take it as business so as to tax it at a higher rate.
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