TAXING INCOME FROM BUSINESS OF SHARE TRADING

HI...

SUCH INCOME IS CALLED INCOME FROM SPECULATIVE BUSINESSES.. THE TAX RATES ARE SAME AS THAT OF NORMAL BUSINESS..

AND REGARDING STT., I THINK ITS ALLOWED

Dear Joseph,

Infact in majority of the cases AO will welcome if assessee is considering his share trading transactions as Business...Because of following reasons -

1) Income will be taxable as per Slab and not @ 20%/15%

2) Sec 10(38) will not be available

3) Tax audit u/s  44AB will be required based on Turnover

STT  paid was earlier allowed as Rebate u/s 88E but now it is allowed as deduction of business expenditure u/s 36

Dhiraj Bhai,

It will be regarded as Speculative only in following two cases -
 

1) Where Transactions are settled without delivery

2) Explanation to Sec 73 - In case of Company wants to show it as Business

Yes.....I should say Amir brother is perfect.............He knows anything and everything.........

I feel proud that i know Amir Brother........

THANK YOU FOR YOUR ANSWERS I AGREE TO THE ABOVE STATEMENTS ...

MAY I PUT SOME COUNTERS??

1. IF THE ASSESSEE CAN SHOW IT AS A SPECULATIVE BUSINESS INCOME, HE'LL BE ABLE TO  

    DEDUCT ANY SORT OF EXPENDITURE IN RELATION TO THE BUSINESS. HE CAN BRING DOWN

    THE INCOME TO LOWER TAX SLABS i.e. HE MAY NOT BE TAXED AT 20%.

    SO THERE IS A CHANCE, THAT DEPT CAN LOSS SOME REVENUE.

2. IF PLANNED  CAREFULLY, HE CAN ALSO EVADE INCOME, BY INCREASING HIS EXPENSES.

3. ALSO, IN CAPITAL GAINS THESE TYPE OF EXPENDITURE ARE NOT ALLOWABLE [ INCL STT PAID]

    HE CANNOT REDUCE ANY EXPENDITURE REGARDING STAFF MAINTAINED, ELECTRICITY ETC..

AM I RIGHT??