Joseph Joy Puthussery (Assistant Professor) (59 Points)
15 March 2010PLEASE ANSWER ME.. CAN INCOME FROM SHARE TRADING ASSESSED AS INCOME FROM BUSINESS IF THE ASSESSEE'S MAIN JOB IS SHARE TRADING?? HOW THE INCOME IS TAXED?? CAN HE DEDUCT STT PAID AS A BUSINESS EXPENSE??
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 15 March 2010
HI...
SUCH INCOME IS CALLED INCOME FROM SPECULATIVE BUSINESSES.. THE TAX RATES ARE SAME AS THAT OF NORMAL BUSINESS..
AND REGARDING STT., I THINK ITS ALLOWED
Amir
(Learner)
(4016 Points)
Replied 15 March 2010
Dear Joseph,
Infact in majority of the cases AO will welcome if assessee is considering his share trading transactions as Business...Because of following reasons -
1) Income will be taxable as per Slab and not @ 20%/15%
2) Sec 10(38) will not be available
3) Tax audit u/s 44AB will be required based on Turnover
STT paid was earlier allowed as Rebate u/s 88E but now it is allowed as deduction of business expenditure u/s 36
Amir
(Learner)
(4016 Points)
Replied 15 March 2010
Dhiraj Bhai,
It will be regarded as Speculative only in following two cases -
1) Where Transactions are settled without delivery
2) Explanation to Sec 73 - In case of Company wants to show it as Business
C.Balaji
(Learner)
(1867 Points)
Replied 15 March 2010
Yes.....I should say Amir brother is perfect.............He knows anything and everything.........
I feel proud that i know Amir Brother........
Joseph Joy Puthussery
(Assistant Professor)
(59 Points)
Replied 17 March 2010
THANK YOU FOR YOUR ANSWERS I AGREE TO THE ABOVE STATEMENTS ...
MAY I PUT SOME COUNTERS??
1. IF THE ASSESSEE CAN SHOW IT AS A SPECULATIVE BUSINESS INCOME, HE'LL BE ABLE TO
DEDUCT ANY SORT OF EXPENDITURE IN RELATION TO THE BUSINESS. HE CAN BRING DOWN
THE INCOME TO LOWER TAX SLABS i.e. HE MAY NOT BE TAXED AT 20%.
SO THERE IS A CHANCE, THAT DEPT CAN LOSS SOME REVENUE.
2. IF PLANNED CAREFULLY, HE CAN ALSO EVADE INCOME, BY INCREASING HIS EXPENSES.
3. ALSO, IN CAPITAL GAINS THESE TYPE OF EXPENDITURE ARE NOT ALLOWABLE [ INCL STT PAID]
HE CANNOT REDUCE ANY EXPENDITURE REGARDING STAFF MAINTAINED, ELECTRICITY ETC..
AM I RIGHT??
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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