08 October 2009
consider the following scenario: Mr.X is a civil contractor and he invests Rs.5,00,000 with Y, a stock broker for conducting day trading in shares and options.so, the issue is 1. Under what head of income be profits from day trading be considered ? 2.How to compute profits in case of day trading from the statements given by the stock broker? 3.If it a loss can it be set-off and carried-forward?
08 October 2009
Profit will be difference between buy and sell rate. The broker reports should display the same. The income will be from Capital Gains. Loss can be carried forward and set off subject to provisions of income tax act.
CAclubindia
