17 September 2008
Is there any criteria for treating profit on sale of shares on which STT paid as business income of capital gain since there is huge difference in tax rates relate to both head. Quote case law or related section if any.
17 September 2008
In case it is the adventure in the nature of trade then treat it as Income from Business & Profession otherwise Capital Gains. Basiclly the transactions may be covered as Adventure in the nature of trade if the volume of transactions is large and the intention for transacting is not for investment.
17 September 2008
If the volume of transaction is on day to day basis i.e Like jobbing than it should form part of business income otherwise if deliveries given at time of sale and taken at time of purchase than it will be in the nature of investment and it will be covered under capital gain
18 September 2008
Even the profit or loss from delivery transactions can be covered under the head of Business Income on the basis given in my earlier reply as per above.
CAclubindia
