Intra-day transaction in shares - capital gain?

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2011 Hello,
If an assessee does a single intra-day transaction (same day purchase and same day sale) in shares, would the gain be treated as capital gains or as income from speculative activity and accordingly be taxed u/s 28? The assessee is not having any business of trading in shares and during the fy concerned, undertook just one transaction (in the entire year).

Is there any case law to support that gains in a single transaction in intraday trading (where intraday trading is not the business of the assessee) can be treated as capital gain? If yes, can you please cite the case law or give the link to the same?

Thanks.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 February 2011 The gain be treated as income from speculative activity and accordingly be taxed u/s 28.

If the resultant profit is less then the same may be treated as capital gains to get rid of the nuances of filing ITR - 4. Otherwise the same would be business income only.

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