Which will be applicable ltcg or stcg

I purchased reliance industry 100 share approx 2 year back at rate  of Rs. 1400 . It is more then two year I am holding my share in my demat account.

Today I purchase  100 share of Reliance at rate of Rs700 and sale today itself at Rs710. ( intraday selling) .

 

Can any one let me know that whether  710-700 =10*100 = 1000 will be short therm capital gain 

 

Or

 

It will be treat as long term capital loss because I there was already 100 share in my demat account since last 2 year .

 

Also can some one explain  I am holding some share for more then 1 year and  later  did trading BTST. Should will consider this as short term or long term

Thanks

 

 

 

Replies (4)

1000/- is speculative income, not capital gain because settlement is done through margin, not by delivery of share.

But in case of BTST it is capital gain/loss because  settlement is done through delivery.

What are the position whem i sell share one day after

Intra Day Sale is not considered for the taxability under the Head Capital Gain. It is a speculative income /loss as the case may be. As, there is no delivery of shares . But as far as, BTST it is capital gain/loss because  settlement is done through delivery

It will not be LTGS/STCG

But it will also not be SPECULATIVE as under IT Act non delivery business on RECOGNISED STOCK EXCHANGE is not speculation

It will be income from other sources.

Also, in case of delivery based sale, it will be LTCG if the delivery of purchased shares is first released to your demat and than sold shares are deducted from your DEMAT....in that case rule of FIFO shall apply and old holding shall be deemed to have sold first.

But under BTST though delivery is taken, the purchased shares are not released to your demat account but on the next day when you sell them they are reduced from your holding from broker's pool a/c.........so if you do BTST then it will be STCG irrespective of your old holding. So in such case you should first wait for the shares to come in your demat account so that if you sell them then by FIFO rule you can set off them against old holding

 

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