Computation of income earned from share market

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Nadia (Querist)

14 December 2013 how do i compute income earned from share market ???

Its Individual(student) who invests in share market ?

plz advise which sections to refer ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

15 December 2013 if you are doing it as a trading activity, then under Income from Business/profession. Otherwise under capital gains.

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Nadia

Nadia (Querist)

15 December 2013 so here income is earned on account of Trading Activity....

One more question.
The person has got capital more then 2-3 lac from his father, which is has used in investing in share market . Will clubbing provisions apply ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

15 December 2013 if it is on trading activity, then maintain books to reflect the shares as stock-in-trade. Money received from father should be shown as borrowed funds. Better also pay some interest on it.

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Nadia

Nadia (Querist)

17 December 2013 How to compute income in interday trading ?
any format in excel...
Which all sections to refer?
any sugestion?

Nikhil Kaushik

Nikhil Kaushik (Expert)

18 December 2013 see computation is simple. the net received or paid at the end of the day is your profit or loss. Sum it up for the year to arrive at net profit or loss.

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