Can i show my gain from shares as business income or is it mandatory to show it as STCG, LTCG?
as business income will be profitable for me.
shivam bhatia (231 Points)
13 March 2024
RAJA P M
("Do the Right Thing...!!!")
(127921 Points)
Replied 13 March 2024
Nikhil Kaushik
(Fellow CA)
(85509 Points)
Replied 13 March 2024
it depends on how you are accounting the transactions on regular basis. if equity holdings are treated as stock in trade, then incomes from sales of such equity is included in business income. Kindly refer to CBDT Circular 6/2016 dated 29 February 2016.
Just keep in mind that in case your income goes up, it may become less beneficial for such income to be taxed under business income.
So whatever you may do, take your decision based on long term tax planning.
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