Justice Easwar committee report in 2016 recommended that capital gains upto 5 lakh should not be treated as business income.
Link: https://www.drishtiias.com/upsc-exam-gs-resources-Easwar-panel-Committee-Report-on-tax-laws
In my case gain from short term stocks is much less than five lakh, but I have 30 stock buy/sells in fy 2017-18.
I am confused about whether to declare it as capital gain or business income.
Please guide.
Is this easwar committee report implemented now?
If you treat the stocks as your inventory and trading with these stocks is your business activity and for this you are maintaining separate books of accounts, then only you can show these as Business Income. Otherwise, if these are kept only for investment purpose or for receiving dividend, then it is to be treated as Capital Asset, hence show the gain as Capital Gain.
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