Can stcg of shares claimed as business loss

Tax planning 721 views 2 replies

Apudi

Student

112 Points Joined December 2008

An asessee has a lot of transactions in share trading

Salary income 150000

Shares delievry based transactions -400000

Intra day transactions 200000

can assesse claim stcg as business loss and setoff against intra day income.

Also he has paid delay payment charges to broker of rs 50000 for delay payment towrds transactions made

can these charges be claimed expense in intra day or stcg or both.

Please advise in best interest of assessee

Replies (2)

Saurabh Maheshwari

B.com ACA

5923 Points Joined December 2011

No,shares are deemed as a capital asset even if you are dealing as a trading activity,therefore ,gain or loss will be Stcg/ltcg or stcl/ltcl.However,while calculating cap gain you can add stt ,brokerage and other levies on purchase to purch cost.similarly,you can deduct such exps on sale from sale proceeds.hope its fine.

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

If the assessee is holding the shares by way of investment, then the same shold be considered under the Head Capital Gains.

however if the assessee is dealing in shares then that would be considered as his business income. however the business loss can't be set-off against salary income.