ShortTerm/LongTerm Capital gain in case of shares Urgent Sir

This query is : Resolved

Rajesh (Querist)
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06 August 2010 Dear Experts,
Can anyone provide me the link for treatment of short term or long term capital gain in case of transfer of shares. How he/she can be treated? Whether as an investor or an trader? What are the implications on such treatment? Whether to treat it as a Business Income or Capital Gain alone.
With regards,
Rajesh.

ALLU

ALLU (Expert)
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06 August 2010 CAPITAL GAINS

BASED ON INDEXATION METHOD

FOR EXAMPLE
PURCHASE PRCE : 1000
SELLING PRICE : 1500

PURCHASE PRICE INDEX VALUE (2008-09) :552

SELLING PRICE INDEX VALUE (2010-11) : 775

INDEXATION VALUE : 775/552=1.403

SO THE NET SELLING VALUE = 1500*1.403

= 2104

CAPITAL GAINS = 2104-1000

=1104

END

IF YOU WANT TDS
==== 1104*(20.6%)

THIS IS CALCULATION BASED ON INDEXATION
THE VALUES IF INDEXATION FROM 1980 WIIL B AVAILABLE IN SO MANY SEARCH ENGINES

BYE

2)

if he/she invests his own money then it it called capital gain and as investor

3)
INVESTOR AND TRADER WORDS ARE TWO DIFFERENT WORDS USED AS

INVESTOR : WHO INVESTS HIS MONEY IN THE BANK OR MARKESTS

TRADER :WHO TRADES HIS SECURITIES IN ONE DAY OR WITHIN ONE MONTH OR WITHIN ONE YEAR

I HAVE GIVE THE CAPITAL GAINGS FORMULA FOR LONG TERM (ABOVE 1 YEAR )

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