12 December 2014
Through our private limited company, we invest and trade in shares/equity. We have both long term investments, which we hold for more then a year and short term investments(trading) which are sold in few days to few months. our Auditor says, since we are not investing as an individual, all capital gains both long term and short term gains are considered as business income and we have to pay 33%+ tax. Is there any other alternative to show our long terms capital again as investments and not trading for example by holding separate brokerage accounts for investments? Please advise?
12 December 2014
Long term gain wont get affected in either case. But short term.....we are at the mercy of Income Tax dept. Dept always likes to tax the same at higher the rate.