Income from shares

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Prabir Kumar Satpathy (Querist)
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22 July 2011 I have made a profit of Rs 30000 in intraday square up and a loss of Rs 60000 in selling of shares( HOLDING PERIOD IS LESS THAN 6 MONTHS).The total purchase and sell turnover for square up is Rs 5 crore and for holding period less than 6 month is Rs 1.5 crore.I have no other income.shall I pay Income Tax? Should I have to submit audited balance sheet with the I T Return?

CA. AJIT KUMAR MURARKA

CA. AJIT KUMAR MURARKA (Expert)
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23 July 2011 PROFIT OF RS. 30,000 FROM INTRA-DAY TRANSACTIONS SHALL BE TREATED AS INCOME FROM SPECULATIVE BUSINESS.LOSS OF RS. 60,000 FROM SELLING SHARES SHALL BE TREATED AS NON-SPECULATIVE BUSINESS INCOME, IF YOU ARE DEALER IN SHARES AND SHORT-TERM CAPITAL GAIN IF YOU ARE HOLDING SHARES AS AN INVESTMENT. FROM THE TURNOVER SPECIFIED BY YOU IT APPPEARS THAT YOU ARE DEALING IN SHARES. PLEASE NOTE THAT IN CASE OF INTRA-DAY TRANSACTIONS ONLY SUM TOTAL OF PROFIT/LOSS (IGNORING SET-OFF OF LOSS FROM PROFIT) IS TREATED AS TURNOVER FOR THE PURPOSE OF AUDIT U/S 44AB OF THE INCOME-TAX ACT, 1961.

Prabir Kumar Satpathy

Prabir Kumar Satpathy (Querist)
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25 July 2011 For the purpose of Turnover I have given the total purchase price and total selling price(Total transaction).More over I am an investor and not a dealer.Due to frequent purchase and sell the figure is so high.But tht actual investment is less than 3 lakh.
Kindly tell me whether I shall have to submit the I T Return or not.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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25 July 2011 Yes you have to submit your return and with the audited account as your turnover exceeds 60L. Intra-day is speculative profit. Profit from shares for which holding period is less than 15 days shall be treated as business income and profit or loss from the shares for holding period above 15 days but less than 1 year shall be treated as short term capital gains which attract 15%+3% Tax.

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