Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Dealing in Equity shares.

Save Share

This query is : Open

charudatta (Querist)

24 November 2008 If i transfer my all equity shares to portfolio wherein such shares are traded by Portfolio Managers.
I don't have any other business income. what shall be the nature of profit/loss which i have earned through portfolio?(either capital gain /loss or business income/loss).
please reply me with reasons.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)

24 November 2008 As per cicular No. 4/2007 dated 15.06.2007, Purchase and sale of shares with a motive of earning profit would result transaction in the nature of trade/adventure in the nature of trade, but where the object of transaction is to derive income by way of dividend etc. then the profit accruing by change in such investment will yield capital gain and not revenue receipts.

So it is clear that if you will regularly trading in shares then it will be treated as Business Income.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now