Capital gain on share sale

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if a person purchase shares & sell that shares in same day, In this case profit/loss will be short term capital gain/loss or PGBP Income/Loss. If This is PGBP Income/Loss what is turnover?

Exp

5000 shares purchase of IDBI for Rs. 400000/- & sale it for Rs. 380000 on same day. is this 20000 Rs. short term cpital loss or pgbp loss & if pgpb loss than what is turnover 780000(400000+380000) or 380000 or 20000(400000-380000).

Replies (2)

Treat is as capital loss

There are many factors which decides whether the purchase/ sell of stocks, securities is business income of assessee or capital receipts. For example, quantum of purchase/sell, frequency of purchase/sell, period of holding, intention of the assessee while purchasing the shares as to whether the same was acquired for holding as investment or for doing business therein, the treatment given by the assessee in its books of accounts etc. If the above transaction explained by you is an isolated transaction i.e. no other transactions of similar nature entered by you then definately it will be treated as capital loss.


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