STCG as business income

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies how to declare Short Term Capital Gains (STCG) from stock market investments. While typically reported under Capital Gains, STCG can be treated as business income if linked to business activity, especially for intraday or F&O trades. However, this often requires maintaining books of account, which can be a challenge if not already done. It's advised to consult a tax professional for specific guidance based on your trading patterns and business structure.

B K D

B K D (Querist)
Follow

01 August 2022 I have some Short Term C G ... how do i show it as business income without maintaining book of accounts ..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

01 August 2022 Short term capital gains should be declared under head Capital Gains.
But if those transaction pertained to any business activity, it can be declared as business profit.
So, how the gain was derived?

Message likes : 2 times

B K D

B K D (Querist)
Follow

05 August 2022 gains were derived from stcg from stock market .. i have small proprietorship business as well .. due to covid there was hardly any business and we faced losses and books of account was not maintained ..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

05 August 2022 The capital gains should be declare under schedule 'Capital Gains'. Get capital gain statement from your broker.

B K D

B K D (Querist)
Follow

05 August 2022 K .. Have got everything from the broker . A CA told me to file stcg as business income and hence wanted to confirm .. thanx for confirmation

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

05 August 2022 If you are doing intraday trading or F&O trades, then the same is declared under business income. But generally delivery based shares investment, is declared under Capital Gains.

B K D

B K D (Querist)
Follow

05 August 2022 Yes Intraday n FnO go in business income . Short Term Delivery can also go in business it was confirmed by motilal oswal but book of accounts have to be maintained .. Dunno about long term delivery ..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

06 August 2022 Short term and long term delivery based transactions can be assessed under capital gains. Whatever you have chosen the trend, the same is to be continued in future years.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now