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DEEPAKPARAKH (Querist)
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02 July 2009 i have online trading income through demat account on daily basis.And now i want to know that under which head it will be taxable in my hands.if their is 2 solution then which is benfical to me if i have loss in it.and i m expecting gain in next year.Can i have option to take it as under head Business OR Capital gain income.

Sanjeev Jain

Sanjeev Jain (Expert)
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03 July 2009 Hie,

Ur income will be taxed under the head Income from business and profession as you stated in ur query that you have income from above mentioned source on daily basis.
second if you loss in the c/y you can carried forward the same for 8 A/y succedding the A/y in which loss occured.

Sathish k

Sathish k (Expert)
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03 July 2009 i agree with sanjeev

further, you can also value your stock in hand as on 31st March as per the market rates prevailing on that date.

for the FY 2008-09 i think it will be beneficial to value at market value. you have to find out the profit/loss in totality and not on script basis.

sathish

DEEPAKPARAKH

DEEPAKPARAKH (Querist)
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03 July 2009 if i file return under head business and profession,then i have to maintain proper books of accounts also because my turnover exceed 40 lacs.but i read somewhere that income of trading in equity shares is section 111, which is a short term capital gain/loss.please guide me under these condition

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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05 July 2009 sec 111A relates to Short Term Capital Gain on sale of shares....

However, when shares Trading is done, it does not amount to capital transactions and fall under the purview of Business Transactions.

U can also claim expenses incurred such as rent, telephone, internet charges,etc. in connetion with your business as deduction from ur business income(loss) and hence it is beneficial also

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