Intra Day Trading in Equity & Trading in Futures & options

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This query is : Resolved

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This discussion concerns the tax treatment of income from intra-day equity trading and futures & options trading. The Faceless Assessment Unit classified both as Short Term Capital Gain, but the assessee argues that intra-day equity trading should be Speculative Business Income and futures/options trading should be Normal Business Income. The assessee believes the assessment unit's view, which seems to be influenced by the assessee being a PSU employee, is incorrect and suggests an appeal.

Ankit Tantia

Ankit Tantia (Querist)

12 December 2023 Dear Members,

In one of the Assessment Proceedings for the Assessment Year 2018-19, The Faceless Assessment Unit has considered Income from Intra day Trading in Equity and Income from Trading in Futures & options as Short Term Capital Gain.

The Assessee has considered Income from Intra day Trading in Equity as Speculative Business Income and Income from Trading in Futures & options as Normal Business Income which in my opinion is correct.

Whether the below noted contention of the Assessment Unit is correct ?

Contention :"Since the assessee is an Employee of a PSU, the Profit from Intra day Trading in Equity and Income from Trading in Futures & options is considered as Short Term Capital Gain and hence the same is calculated accordingly"