Sale of shares
This query is : Resolved
30 July 2015
Dear Exports,
1. I purchase the share and sale the share in same date, can it is consider as speculative business.
Thanks
1. I purchase the share and sale the share in same date, can it is consider as speculative business.
Thanks
30 July 2015
yes it is considered as speculative trading..
30 July 2015
Thanks Sir,
e.g if I already have 100 shares of HUL as on 01.04.2015. If have purchase 10 shares of HUL on 30.07.2015 and sell that share on same date, can it is consider as speculative business.
e.g if I already have 100 shares of HUL as on 01.04.2015. If have purchase 10 shares of HUL on 30.07.2015 and sell that share on same date, can it is consider as speculative business.
23 July 2025
Great question about the nature of share transactions and speculative business! Here’s the clarity you need:
---
### 1. **Speculative Business in Shares**
* **Speculative transactions** are typically defined as **buying and selling of shares on the same day** (intraday trading) or contracts where actual delivery does **not take place**.
* The Income Tax Act (Section 43(5)) considers **shares sold on the same day without delivery as speculative transactions**.
* If shares are **actually purchased (delivery taken) and sold on the same day**, it is still generally treated as **speculative business income** unless you hold the shares separately.
---
### 2. **Your Specific Scenario**
* You already **hold 100 shares of HUL as on 01.04.2015** (opening balance).
* You **purchase 10 shares of HUL on 30.07.2015** and sell these 10 shares on the **same day**.
* The **sale of these 10 shares on the same day** is considered **speculative business** as per tax norms, even if you hold other shares separately.
* The 100 shares held earlier are **not speculative** because they were held longer than a day.
* So, only the **transaction of purchase and sale of 10 shares on the same day** is treated as speculative business.
---
### 3. **Summary**
| Transaction Type | Tax Treatment |
| ----------------------------------------------------- | ------------------------------------ |
| Holding shares and selling after some time | Capital gains (short-term/long-term) |
| Buying & selling same shares on same day | Speculative business income |
| Holding separate shares, trading some shares intraday | Speculative for intraday trades only |
---
If you want, I can help you with how to report these in your Income Tax Return or how to maintain your books properly for speculative and non-speculative transactions. Would you like that?
---
### 1. **Speculative Business in Shares**
* **Speculative transactions** are typically defined as **buying and selling of shares on the same day** (intraday trading) or contracts where actual delivery does **not take place**.
* The Income Tax Act (Section 43(5)) considers **shares sold on the same day without delivery as speculative transactions**.
* If shares are **actually purchased (delivery taken) and sold on the same day**, it is still generally treated as **speculative business income** unless you hold the shares separately.
---
### 2. **Your Specific Scenario**
* You already **hold 100 shares of HUL as on 01.04.2015** (opening balance).
* You **purchase 10 shares of HUL on 30.07.2015** and sell these 10 shares on the **same day**.
* The **sale of these 10 shares on the same day** is considered **speculative business** as per tax norms, even if you hold other shares separately.
* The 100 shares held earlier are **not speculative** because they were held longer than a day.
* So, only the **transaction of purchase and sale of 10 shares on the same day** is treated as speculative business.
---
### 3. **Summary**
| Transaction Type | Tax Treatment |
| ----------------------------------------------------- | ------------------------------------ |
| Holding shares and selling after some time | Capital gains (short-term/long-term) |
| Buying & selling same shares on same day | Speculative business income |
| Holding separate shares, trading some shares intraday | Speculative for intraday trades only |
---
If you want, I can help you with how to report these in your Income Tax Return or how to maintain your books properly for speculative and non-speculative transactions. Would you like that?
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