Dealing in shares
This query is : Resolved
09 September 2010
If a person deals in stock market than how does he differentiate the transaction as invstments or business
Ankit Garg
(Expert)
09 September 2010
The nature of transaction (investment or business) is mainly differentiate according to their quantum.
As per circular no. 4/2007 and notification no. S.O. 89(E)[year not remind], if the transactions are much then it should be consider under business income.
If the shares are held for dividend purpose then it should be consider as investment.
In nutshell, if the transactions is much then it should be consider under business.
If the turnover is low, then you may consider as investment.
As per circular no. 4/2007 and notification no. S.O. 89(E)[year not remind], if the transactions are much then it should be consider under business income.
If the shares are held for dividend purpose then it should be consider as investment.
In nutshell, if the transactions is much then it should be consider under business.
If the turnover is low, then you may consider as investment.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- GSTR-9C filing
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Royalty payments to the Mining Department for procurement of murum - GST input
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- TDS- 2026-27 Q1 Correction
- GSTR9 Annual Return
- Ito add credit side of bank
- Employee secondment
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
