Tax treatment for Intra-day sale & Intra-day purchase
This query is : Resolved
14 March 2008
Facts : Currently i m having Rs. 30000/- STCG, which is taxable @ 10%. Therefore tax amt of Rs. 3000/- + cess is payable.
I want to avoid this by booking STCL on current securities (CS) held by making Intra-day sale of CS. I will be purchasing these CS (same no. & combination of scrips) again on Intra-day basis.
Query : Is this Intra-day sale & purchase will be treated as a Separate transactions for tax purposes OR this will be ignored as "No Delivery" is involved in Sale and Purchase.
Please provide some case law or circular, if any in support of this.
I want to avoid this by booking STCL on current securities (CS) held by making Intra-day sale of CS. I will be purchasing these CS (same no. & combination of scrips) again on Intra-day basis.
Query : Is this Intra-day sale & purchase will be treated as a Separate transactions for tax purposes OR this will be ignored as "No Delivery" is involved in Sale and Purchase.
Please provide some case law or circular, if any in support of this.
CA. GOPAL SONIKA
(Expert)
14 March 2008
Intra day sale and purchase is taxable under the head Speculation Profit/Loss. The loss under this cannot be set off agst STCG.
CA Praveen Chopra
(Expert)
14 March 2008
GOPAL IS ABSOLUTELY CORRECT
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