02 July 2009
i have online trading income through demat account on daily basis.And now i want to know that under which head it will be taxable in my hands.if their is 2 solution then which is benfical to me if i have loss in it.and i m expecting gain in next year.Can i have option to take it as under head Business OR Capital gain income.
Ur income will be taxed under the head Income from business and profession as you stated in ur query that you have income from above mentioned source on daily basis. second if you loss in the c/y you can carried forward the same for 8 A/y succedding the A/y in which loss occured.
03 July 2009
if i file return under head business and profession,then i have to maintain proper books of accounts also because my turnover exceed 40 lacs.but i read somewhere that income of trading in equity shares is section 111, which is a short term capital gain/loss.please guide me under these condition
05 July 2009
sec 111A relates to Short Term Capital Gain on sale of shares....
However, when shares Trading is done, it does not amount to capital transactions and fall under the purview of Business Transactions.
U can also claim expenses incurred such as rent, telephone, internet charges,etc. in connetion with your business as deduction from ur business income(loss) and hence it is beneficial also
CAclubindia
