Intra-day trade along with investment in shares
This query is : Resolved
08 June 2020
An Advocate, who usually invest some of his savings in shares performs some intra-day trades only on 2 days in F.Y. 2019-20. My question is how will he treat his intra-day trading activity for the purpose of income tax:
1)Will intra-trading done on 2 days be a part of speculation business? If yes, then can he file his return under 44AD? What will be the turnover in case of speculation activity? Will shares purchase and sold during the year as an investment will also be part of the turnover?
2)Will it be right for the purpose of income tax if he shows his income from day trading as speculation business income and show shows short term capital gain on sale of shares he held as investments?
1)Will intra-trading done on 2 days be a part of speculation business? If yes, then can he file his return under 44AD? What will be the turnover in case of speculation activity? Will shares purchase and sold during the year as an investment will also be part of the turnover?
2)Will it be right for the purpose of income tax if he shows his income from day trading as speculation business income and show shows short term capital gain on sale of shares he held as investments?
08 June 2020
1 yes, intra day trading is speculative and 44AD not available. Shares purchase and sale will not form part.
2 It will be right for the purpose of income tax if he shows his income from day trading as speculation business income and show short term capital gain on sale of shares he held as investments.
2 It will be right for the purpose of income tax if he shows his income from day trading as speculation business income and show short term capital gain on sale of shares he held as investments.
Message likes :
1 times
10 June 2020
thankyou sir for your expert advice. But, I have one more question that, how will be the computation on income,
(i) will we consider total of purchases reduced by total of sales as income? or,
(ii) will we consider the aggregate of both positive and negative differences of each scrip as the turnover (as given in the "Guidance Note on Tax Audit under Section 44AB of the Income Tax Act,1961"). If yes, then in such case what will be the income?
(i) will we consider total of purchases reduced by total of sales as income? or,
(ii) will we consider the aggregate of both positive and negative differences of each scrip as the turnover (as given in the "Guidance Note on Tax Audit under Section 44AB of the Income Tax Act,1961"). If yes, then in such case what will be the income?
10 June 2020
Consider the aggregate of both positive and negative differences of each scrip as the turnover (as given in the "Guidance Note on Tax Audit under Section 44AB of the Income Tax Act,1961").
Net of positive and negative will be income.
Net of positive and negative will be income.
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
- Itr 1 processing
- Off Market debit and credit transaction
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Share accounting-->fifo - capital gain - period as per fifo?
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR validation error - Balance sheet is not filled
- Registration as Authorised Representative of minor
- Article ship defecit
- Bank Accounts in Balance Sheet for ITR 3
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
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
