05 June 2009
I want to know what will be the tax treatment in respect of
1) Profit / Loss from trading in Shares 2) Profit /Loss from Investment on regular basis in Share 3) Profit /Loss from speculation through F & O segment of Shares.
PROFIT / LOSS FROM TRADING IN SHARES (INTRADAY TRADING)
Facts are as under :
a) I do trading in shares on daily basis, if I purchase shares of Rs. 1,00,000 and sells the same for Rs. 1,05,000 on daily basis and earns a profit of Rs. 5,000/- daily, then during the full year, (say 2009-10)
Total Purchase Value is 260.00 lacs say Total Sales Value is 273.00 lacs say So,Total Profit 13.00 lacs
Whether this is to be shown under the head income from Business and Profession ? Whether the sale and purchase values are to shown ? Whether Tax audit is required as the volume crosses 40.00 lacs ? Whether can I show it as income from Other sources ?
PROFIT / LOSS FROM INVESTMENT IN SHARES (DELIVERY BASIS)
Facts are as under :
Day -1 = Purchase shares of Rs. 1,00,000 Day-2 = Purchase shares of Rs. 1,50,000 Day -3 = Purchase shares of Rs. 2,00,000 Day-4 = Sale of Shares acquired on Day-1 for Rs. 1,05,000 Day-5 = Sale of Shares acquired on Day-2 for Rs. 1,55,000 Day-6 = Sale of Shares acquired on Day-3 for Rs. 2,10,000 Similarly during the full year delivery transaction are carried out making a large volume for example
Total Purchase value of the year 200.00 lacs Total Sale Value for the the year 225.00 lacs Thus, a profit of Rs. 25.00 lacs
Whether this profit will be considered as Short tem Capital Gain ? Whether this also will be treated as Income from Business & Profession ? Whether Tax Audit is required for this ?
PROFIT / LOSS FROM INVESTMENT IN SHARES (F & O)
Facts are as under :
I carried out the F & O transactions for full year 2009-10 If I earned a profit from this operation of Rs. 5.00 lacs
Whether this is to be shown under the head income from Business and Profession ? Whether the sale and purchase values are to shown ? Whether Tax audit is required as the volume crosses 40.00 lacs ? Whether can I show it as income from Other sources ? How to calculate the volume under F & O segment ?
I will be thankful to you if necessary attention is given to the above.
CAclubindia
