speculative transaction u/s 43(5)
This query is : Resolved
18 November 2010
One of our client is a trader in shares.His turnover has exceeded Rs.40 lacs. Regarding the taxability of the profit from this business, I have the following questions:
1. Whether intra day transactions will be treated as speculative transactions?
2. Whether profit/loss on shares purchased and sold before settlement period (T+1 OR T+2)will be treated as speculative income/loss or normal business income/LOSS?
3. If the shares are not transferred to the demat account and the sales are made directly from the pool account, whether it will be treated that delivery has not taken place or we can assume that constructive delivery has taken place AND HENCE WILL BE TAXABLE AS REGULAR INCOME/LOSS.
Please clarify the above points and give case laws, if any.We have taken the entire loss on trading in shares as normal business loss and adjusted against other business income. Now the ITo wants to assess the loss from shares as speculation loss.Are there any favourable points we can give in support of the assessee?
1. Whether intra day transactions will be treated as speculative transactions?
2. Whether profit/loss on shares purchased and sold before settlement period (T+1 OR T+2)will be treated as speculative income/loss or normal business income/LOSS?
3. If the shares are not transferred to the demat account and the sales are made directly from the pool account, whether it will be treated that delivery has not taken place or we can assume that constructive delivery has taken place AND HENCE WILL BE TAXABLE AS REGULAR INCOME/LOSS.
Please clarify the above points and give case laws, if any.We have taken the entire loss on trading in shares as normal business loss and adjusted against other business income. Now the ITo wants to assess the loss from shares as speculation loss.Are there any favourable points we can give in support of the assessee?
18 November 2010
Proviso to section 43(5) is very clear. The loss incurred is speculative and the ITO's view will sustain.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Reporting Income under Section 44ADA
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- ITR 1: Details for showing Exempt Income
- ITR returnFY25-26
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
