Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

Speculation in shares

18 June 2022

my client purchases shares and sold on the same day. sometimes he will sell within 4 or 5 days.
he may sell within 15 days.
will the transaction be treated as short term capital gains or speculation income. plz clarify

Reply
Follow
Share

8 Replies

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 18 June 2022

Same day transactions are treated as speculation business and remaining as short term capital gain.

Upgrade to CAclubindia Pro. Subscribe Now!

MPR Sanjay Kumar (3118 Points)
Replied 18 June 2022

🌟 My honourable CA Rashmi Gandhi mam,what is mean by speculation business ???
income and loss in speculation???

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 18 June 2022

Speculation here means intra day sales of shares.

sabyasachi mukherjee (27644 Points)
Replied 19 June 2022

Entire is speculation and systematic study .
Not only same day transaction is systematic study.

rama krishnan (12244 Points)
Replied 19 June 2022

Speculative business in shares is kind of business where transactions takes place without actual delivery of shares. in some instances trader may purchase the shares in the morning by actual delivery and sell it in the evening by actual delivery. this will not be treated as speculative business but as stcg

Upgrade to CAclubindia Pro. Subscribe Now!

sabyasachi mukherjee (27644 Points)
Replied 19 June 2022

PHYSICAL DELIVERY OF SHARES HARDLY TAKES PLACE.

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 19 June 2022

BUT WHEN YOU DOWNLOAD BROKERS CAPITAL GAIN STATEMENT ,THEY DO SAME TRANSACTIONS WITHOUT ACTUAL DELIVERY AND THAT'S WHY SAME IS TREATED AS SPECULATION.

1 Like