Short Term Capital Gains Tax on shares was fixed at 15% flat which intended to provide relief for investment in shares. However, while it provides concession to those falling in higher tax slabs of 20-30%, it punishes those in the lowest 10% tax slab. Recently, an option is provided to the assesses to treat profit on shares as business income which hitherto depended on concurrence of the assessing officer. In this context, my query is : 1. What should an individual with Salary and Interest Income only, besides occassional short term profit on sale of shares, do? Should he prefer to treat STCG on sale of shares as business income? If yes, what about the return form to be used by him? 2. If he prefers to do so, what about the long term capital gains on shares? Is it necessary to give similar treatment to LTCG on shares too?
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