Tax on Income from Share Trading

bharati marathe (Student) (38 Points)

06 May 2011  
Suppose, Mr. A is 55 years old person who trades in shares and income from share trading is only his income. He normally buys and sells on the same day without taking delivery or takes delivery and sells the shares afterwards but before 1 year.
1) What will the nature of income from this two types of transactions? Whether the income from day trading without trading will be treated as speculation gains or business income?
2) How can we show the same for the tax purpose?
3) Are these incomes chargeable at different income tax rates? at what rate of tax?
4) Which ITR form to be used? What could be the nature of business?
5) Is he eligible for any deductions from Section 80C of Income tax Act?
6) If there are losses under these two types of transactions, whether the same can be carried forward?
Kindly revert.