Profit on sale of shares

Hi harsh, Since speculative transaction means a transaction in which agreement to buy or sell a commodity (including stocks and shares) is executed without physical delivery of commodiy. Hence tax treatment should be under head "profits & gains from business and profession". Refer section 43(5) .

Following transactions can't be taken as speculative transactions 1.trading of derivatives. 2.contract entered into by a member of forward market or stock exchange in the course of any transaction in the nature of jobbing or arbitrage to guard 3.dealing of shares through price fluctuations... In this case you can't treated as a speculative Business it's like a trading in derivatives... Further clarification refer 43(5) exemptions

 Only trading on intraday trading , that too on major scale rather  around 10 trades / day , for more than 60% working days in a year , can be termed as speculative trades / business , rest all squared up within a year are  clubbed with business income , and finally  sell  of shares after a holding period above a year comes under LTCG