Capital gain vs speculation / non speculation.
This query is : Resolved
Gnana Sekar
(Querist)
22 August 2012
Hi,
I have a doubt on the below.
Mr.X is trading in securities listed in NSE and BSE on weekly basis or monthly basis. Also when ever he has time, he use to do Intra-Trading also. In addition to this he is working in a Private Company drawing a monthly salary of Rs.40,000.
Whether the Trading business income will be considered as a Speculation Businss Income or non Speculation Businss Income or Short Term Capital Gain (if he holds the shares for 12 months)
I have a doubt on the below.
Mr.X is trading in securities listed in NSE and BSE on weekly basis or monthly basis. Also when ever he has time, he use to do Intra-Trading also. In addition to this he is working in a Private Company drawing a monthly salary of Rs.40,000.
Whether the Trading business income will be considered as a Speculation Businss Income or non Speculation Businss Income or Short Term Capital Gain (if he holds the shares for 12 months)
CA VISHNU GAVKARE
(Expert)
24 August 2012
Intra day is speculation, Inter day is capital gain.
K Srinivas, CMA CS
(Expert)
24 August 2012
Usually Intraday trading and trading in derivatives are considered as speculative business.
Whether your activity is speculative business or capital gains transaction depends on factors like frequency of trading, the volume of your transaction etc.
Hope this helps
Whether your activity is speculative business or capital gains transaction depends on factors like frequency of trading, the volume of your transaction etc.
Hope this helps
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