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Arthi Ganesh (none)     07 September 2021

Can I show share trading income as business income?e

I am getting short term capital gain from share trading. My friend is trading in my account and he gets 10% as commission from the profit every quarter. Can I show the share income as business income and the commission paid to my friend as expense? Can I give the commission as cash? Please help me.

 4 Replies

Dhirajlal Rambhia

Dhirajlal Rambhia (SEO Sai Gr. Hosp.)     07 September 2021

Depends upon period of holding and the pattern adopted in preceding years.

If its Intraday trading or having very short period of holding........... you can treat it as business (speculative) income.

Arthi Ganesh

Arthi Ganesh (none)     07 September 2021

Thanks for the reply. It is not intra day trading. The shares are bought and sold within a maximum of 3 months. Trading is done less frequently. To show the commission paid to my friend as expense, can I make cash payment?

CMA Poornima Madhava

CMA Poornima Madhava (CMA)     07 September 2021

If these are not intra-day trading, then delivery based transactions are taxed under capital gains depending upon the period of holding. As I understand, these are not business incomes and deduction of expense on account of commission cannot be claimed.

1 Like
herbsandchilli Trading

herbsandchilli Trading   08 September 2021

In loss in intraday speculative stock market trading Businees

(intraday stocks,delivery stocks,( only STCG no long term ) +Commodity &Currency futures.

2 DMAT accounts  as account with 2 brokers.

First time filing ITR-3 with "specualtive trading " as a business.

Need CA who can do tax audit (as my profit is less than 6%of turn over )  +other income (only FD interest ) is above Rs 2.5 lakhs.

I heard STT paid on intraday equity & Futures transaction is refundable (basically to arrive at the net loss to adjust againt other income which is FD interest) if filing ITR3 with trading s a business.

CA's who specilise in stock market speculator's ITR filing -Kindly contact here or message . Thanks 


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