parvesh garg (Student CA / Articleship) (100 Points)
24 February 2016If some one has made a intra day transaction in share and he earned profit on it.
whether it is taxable under the head of PGBP or capital gain.
Please clarify it with relevant provision of income tax Act.
CA. Ankit Bhandari
(Manager finance)
(156 Points)
Replied 24 February 2016
depends on the kind of business he is having. if he is in the business of trading then taxable under PGBP Otherwise CG
CA Prateek Garg
(CA in Practice)
(1447 Points)
Replied 24 February 2016
Income from Intraday transaction can’t be regarded as investment and any income earned from intraday transaction is taxable under PGBP
Further
- Intraday transaction in equity market is to be considered as Speculative business
- Intraday transaction in derivatives is to be considered as normal business
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