Hi,
Can someone please help me on my tax planning? I recently left my job and planning to get engaged only in the stock investment. Please note that I am only into equity-cash delivery market and I hold stocks for few months to few years. When I was employed, all my stock market gains were treated as Short/Long term capital gains , so the tax rate was lower (10% or 15%). Now since I am unemployed, I heard that there are chances that my income from stock market may be treated as business income as result of which my tax rate may get higher. Can you please suggest some ways to classify my income as capital gains in order to reduce the tax rate? One suggestion I heard is to hold the stocks for more than a year , so I will be considered as an Investor not trader so only LTCG would be applicable. Thanks in advance for your suggestions.
Thanks
Mani