Income from share trading

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My client is a share trader in Future & option segment ..his total trading volume crossed 25 crore this year with around 8 lacs profit... should he classify his income as income from business and profession or can he take benefit of short term capital gain... his average holding time is 10 -15 days..

If it is going to be considered as income from business and profession  then does his income need to be audited?

Replies (4)

There are many case laws and Rulings by deptt on this issue, Keeping that in mind it will be PGBP income and No Cap gains will be attracted.

Can you please provide ref to some of the case laws
How about audit liability

CIT Vs Rohit Anand and in Authority for Advance Ruling (AAR) (288 ITR 641)  the Authority has laid down few principles for distinction between securities held as stock in trade or investment.

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