ShortTerm/LongTerm Capital gain in case of shares Urgent Sir


This query is : Resolved 

(Querist)
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 (Expert)
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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