Short Term Capital Gain Tax

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)
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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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