Tax on interest earned from stock market investment firm

This query is : Resolved 
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If you receive profit share from a firm investing in the stock market on your behalf, it's generally treated as business income, especially if you don't hold the shares directly. If the agreement specifies it purely as interest, it might be declared under 'Income from Other Sources'. Clarify the nature of your agreement with the firm to ensure correct tax reporting.

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(Querist)
18 July 2022 I individual tax payer. i have invested 25 lac amount to firm who is investing in stock market .
i am receiving 60 percent return about 6 lac on investment yearly as profit share.
please guide me what is taxation in income earned on my investment.
whether there is special provision for income earned in this. what tyape of income called it.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
18 July 2022 What sort of agreement you have with the firm?
If its just interest, declare it under Income from Other Sources.
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Pravin Bhongale

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Pravin Bhongale (Querist)
18 July 2022 in agreement income is mentioned as par of profit sharing income.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
18 July 2022 Unless you are taking any delivery of shares in your demat account, treat the income as business income.
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