Share trading profit or loss

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This query is : Resolved

CA Abhishek Jain (Querist)

19 February 2008 In share trading, can we treat intraday profit or loss as capital gain.

If we treat this as Business income then how can we calculate the turnover for the purpose of tax audit?

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)

20 February 2008 Yes if there is intra day profit/loss it is short term capital gain/loss but if anyone wants to treat his income as buisness income than aggregate of profit and loss incurred shall be the turnover for the purposes of 44AB
Eg. profit 1000000 and loss 3000000 than the assessee shall be liable for tax audit u/s 44AB .

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)

20 February 2008 Intra Day is Speculation Gain/ Loss as there was no delievery at all. It can be treated as business income only if the shares buy are for trading purpose

CA Abhishek Jain

CA Abhishek Jain (Querist)

20 February 2008 Saurabh/Kirti

Thanks 4 ur suggestion.
I think thak Kirti is right because we dont hav delivery in intraday trading so we cant treat profit/loss as a capital gain/loss.

but Saurabh ur advise is also informative related to U/s 44AB.

Thanks.

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