How profit earned on short selling of shares is taxed. On purchase of shares to cover the transactions, will it be treated as STCG or normal business profit or speculation profit?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166645 Points)
Replied 20 August 2021
Check frequency of transactions. If frequent, go for speculative business income.
Lila
(Job)
(491 Points)
Replied 20 August 2021
Not very frequent...can it be treated as STCG / STCL..
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166645 Points)
Replied 20 August 2021
Being short sell, advisable to declare under IFOS.
Samantha J
(1236 Points)
Replied 21 August 2021
Vishal Mittal
(Banker)
(31 Points)
Replied 24 August 2021
As it's a transaction of short selling, it will be settled not by actual delivery of shares. So, it's a speculative transaction and therefore, should be shown as speculative business income.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166645 Points)
Replied 24 August 2021
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