A client has a large volume of shares transactions , the resultant profit was taken as capital gains. The AO is of the opinion that it has to be treated as business income.
The client, who is presently in the USA has 2 portfolio managers here who operate her portfolio.
Is the income capital gains or business profits??
Hi,
In case of share transactions,resultant profit is to be taken as income from B/P , Capital Gains or Speculative Business income depending on nature of transactions.
1)In case of intraday Transactions , Profit is to be taxed under profit from Speculative Business.
2)In case of Future & Options (derivatives) , Profit is to be taxed under profit from Business & Profession.
3) While in other cases it is Capital Gain.
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