Ltcg be treated as busines income if invested by borrowed mo

Ibrahim (Assistant Manager) (83 Points)

01 September 2016  

I had taken a personal loan from bank for 5 lakhs and invested in mutual fund and plan it to keep it for long term 5 yrs. and more would this gain would be treated as capital gain or business income since investment is made out of borrowed money do i need to show this as a stock in trade or capital asset if stock in trade then whether all my investment in mutual funds other than this loan amount would need to be shown as stock in trade because I m investing since 2010 in mf from my savings and gifts and during previous year before taking loan had sold some units which were filed as ltcg do i need worry about my previous gain as well.