Clarification on speculation income form shares.

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2012 Dear Sir,
If an person has sold some shares without delivery, hence the same amounts to speculation but since he is liable to fine ITR2 therefore can you please advice where should the income/loss from such should be shown as there is no separate place for income from speculation. OR

If the person is liable to file ITR4 (due to some other business) but the above speculative transaction is not his business it is just an investment of his fund,hence it could not be classified as income form speculative business as per Sec 28.
Thus where should be the same reported while filing ITR4 for the Asst yr 2012-13.

Thanking you in advance

Yours Faithfully

Himanshu Binani
(M)-9674437168

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

10 July 2012 1. Income from intra day trading in shares is ALWAYS considered as speculation income.

2. Applicability of ITR depends on the source of income of the assessee.

You have to first determine all the sources of income and then decide the return form.

If you have speculation income, then ITR 4 will be filed even if the assessee does it have any other business.

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