15 April 2009
if you make intra day share trading...its a speculative income hence its definetely income from speculation business thus under head income from business....and for delivery trading......there are two options....if your nature of trade is frequent and huge in number...you ought to maintain two seperate lists of portfolios....of your shares..... one - namely...trading portfolio....the details of shares you are trading in nature of business and whose frequency of trade is high irrespective of the profit or loss earned........and other namely - investment portfolio...the details of shares you buy and sell in nature of investment...thus the gain or loss is u/s sec 111 i.e stcg from securities taxable @ 15% flast rate w.e.f. a.y 2009-10. and as you know any share you buy and hold for atleast 12 months before you sell then the gain is long term on sale of securities(subject to payment of S.T.T) and is totally exempt from tax u.s 10(38)....have a nice trading..bye bye
16 April 2009
what would be position if a pvt ltd co do delivery based trading (delivery is taken & made through the pool account of the broker) means not F & O transaction. 1. will it be business income or speculative income. 2. will tax audit be applicable, and in which manner turnover will be calculated for check 40 lacs
CAclubindia
