short term income from debt funds

Reference: Circular 6/2016 CBDT & scope of 44AD. 

Any harm in representing short term gain from debt mutual funds from well known fund houses like HDFC, Birla SBI etc as business income u/s 44AD? 

(The taxability of STG from debt mutual funds is "Add to Slab" so taxability remains the same whether classified as capital gain or business income  & so this question is on classification alone.) 

Maybe this question has more to do with the scope of 44AD than circular 6 because 44AD covers trading of all kinds & not just listed securities, and consequently selling a debt mutual fund back to the fund house can be called trading if suitable to assesse?

If it is not trading what else is it? It entails selling of units to the fund House.

So if we can represent STG from debt mutual funds as business income u/s 44AD, then what is the appropriate business code? Retail sale of products n.e.c?

This question might not Reference: Circular 6/2016 CBDT & scope of 44AD. 

Any harm in representing short term gainfrom debt mutual funds from well known fund houses like HDFC, Birla SBI etc as business income u/s 44AD? 

(The taxability of STG from debt mutual funds is "Add to Slab" so taxability remains the same whether classified as capital gain or business income  & so this question is on classification alone.) 

Maybe this question has more to do with the scope of 44AD than circular 6 because 44AD covers trading of all kinds & not just listed securities, and consequently selling a debt mutual fund back to the fund house can be called trading if suitable to assesse? 

If we can represent STG from debt mutual funds as business income u/s 44AD, then what is the appropriate business code? Retail sale of products n.e.c?

This question might not make sense as to why it should be done this way, but it is relevant & very important, so go ahead & answer it. 

Might not make sense as to why it should be done this way, but it is relevant & very important, so go ahead & answer it. 
Replies (3)

Provide some justification with any case law or notification in its support......

Sir have a look at this document. In this the revenue department wanted to classify someone's mutual funds & stock market income as business income. They have specifically written mutual funds also.

I saw a case on Google where revenue wanted to represent someone's stocks & mutual funds as business income:

See paragraph 2 in the following document:

https://drive.google.com/file/d/0B3j3oXdY53gVZzBjRGVVWnMwelk/view

It refers to trading of MF units (i.e.on stock exchange) like shares, but not allotment and redemption by fund house, which is usually asessed u/h capital gain.

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