If one trades in F&O and at the same time does delivery based investment (about 10-20 transactions a year), can one show the incomes under all three heads -
(a) Business Income
(b) STCG(stocks held for a few days/weeks)
(c) LTCG (stocks held over a year)?
Are there any regulations/guidance notes/rulings around this if case one can show income under all three heads ?
Income from F & O will be ordinary business only & not in speculation business
Short termcap gains will include transaction within one year
& LTCG will include items of purchase & sale in more than one year
Income from F & O in shares will be non speculation business income and if the number of transactions during the year is less then you can show it as short term capital gains if held for less than 1 year and long term capital gains if held for more than 1 year.
Some people show income from all the heads of income. That is not a problem. Guidance notes are mostly for accounting purposes. There are no such regulations for showing such a thing. There is a whole income tax with around 298 sections and income covered under the five heads of income will be taxable under the said head.
Dear Nitin and Aditya,
Thanks for the response.
CAclubindia
