Short Term Capital Gain Tax

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2011 Dear Sir, I am starting a new business where I would be dealing only in Intraday & Delivery Purchase & Sale of Shares & Stocks through Sharekhan. Now kindly assist me whether
(i) Should I start up the same in name of a proprietorship Firm or an individual.

(ii) Can I save Short Term capital Gains by showing a proprietorship Firm wherein stocks held would be shown as Stock in trade.

(iii) If no, what is the procedure of saving Short Term Capital Gain tax on Trading in Shares & Stocks.

I am also a partner of a pertnership firm which was opened in 2010.

Please assist me. My no is (+91) 8822196636. I also require a Chartered Accountant as my Trading would cross the Audit Limit. Plz assist me at the earliest.

Regards, Soumitra Sengupta, (Guwahati).

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

23 May 2011 In spite of being a partner, you may start trading in shares. Shares held can be shown as stock in trade.
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It does not matter whether you are doing business in Individual name or in Proprietorship firm.
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The idea to do business in a Prop. firm is better looking towards the fact that you want to show the business as trading in shares only. By doing so claim of business expenses can be justified comfortably.

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