Query about taxability of income

Since shares are specifically treated as capital assets & many of the court decisions have subscribed to this view, the cash trading in shares should be classified under capital gain tax. Similar treatment can also be given to F & O segment trading. But particularly in case of F & O, it would be S/T capital gain/loss which is akin to business income as far as the taxes are concerned. However, previously we have seen some cases wherein the F&O turnover was separately shown as "Speculative Transactions".  There is a Dept circular regarding their treatment I guess. I think we need to search it for our own benefit.

• F&O transations are treated as normal business income.
• Intra day trading is treated as speculative business income.
• Cash trading in treated as business income if volume of transaction are more.

thanks.

I hope Mr. Anooj has got his answer. Thnx Nish*th for the clarification !!! But quite a few case laws have come wherein ITAT has held that mere volume of transactions cannot be the barometer for treating share income as regular business income..An investor can also have volumes in his share dealings. That does not mean that he has the business income therefrom. He will still be taxed under capital gains head  as was held under Nagindas P. Sheth HUF  vs  ACIT (ITAT MUMBAI)