Tax on income from share trading business

it will be taxed as per tax slab....

Share trading Business means ????????

In Equity as Investment

          or

Intraday 

           or

trading in future and option

because all have taxed different rate and ruels

and who say flat rate of 30% ???

Mr.Shahid Afridi

The courts have taken different view regarding the income derived from frequent purchase and sale of shares.

Some courts have said that the income is busines income and other courts have held that the income is to be taxed under the head 'Income from Capital Gains'

i am herewith attaching the judgements.

Best wishes

Sathikonda

@ GN Jha

By Share trading business i meant F&O and cash market trading with a profit motive. tax rate would have been flat 30% for p'ship firm.....i was not sure for proprietory....now i know that it would be as per slabs

@ Sathikonda

thanks a lot for sharing the relevant case laws

Originally posted by : Shahid Afridi
	@ GN Jha By Share trading business i meant F&O and cash market trading with a profit motive. tax rate would have been flat 30% for p'ship firm.....i was not sure for proprietory....now i know that it would be as per slabs @ Sathikonda thanks a lot for sharing the relevant case laws

for partnership firm and company ...every income is taxed @ 30% whats new in this ?

share trading business generally known as activity conducted by individual and HUF.

Dear friends

I am attaching a pdf file which contains another case law on the subject being discussed. 

Best Wishes

Sathikonda

Well there is no such case law ( latest  one) or in the IT act to decide about the nature of the transaction.

You have mentioned that it is a share trading business. SO you need to check the volume of trading.
if its done regularly than it is business income and 30% wil be applicable.

IF it is done occasionally than it is STCG.

F&O trade is a business income.... shares trade Cap Gain

Commodity currency trade business income

Mr.Shivang

Business income cannot be subjected to flat rate of tax.  It should be taxed on slab rate in the case of an individual. If the assessee is a firm or a company the rate of tax is 30%.  Hope I have clarified the matter.  Your answer is incomplete for the reason you have not mentioned the status of the assesee.

Untill the matter is settled by the Supreme Court we have to follow the judgement of jurisdictional High Court.

Best Wishes

Sathikonda

Normal rates of tax will apply and not flat rate.

Intraday Trading or Trading in Shares is taxable under the head business income,Actually it is the purchase of shares made with the motive of earning profit.

If a person holding the shares for a considerable period of time to accumulate wealth (dividend) it comes under capital gain & the holding period is exceeding 12 months then no tax levied provided STT is paid,otherwise tax is levied @ 15% on his net capital gain.