LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Would Trading in Equity treated a High Value Transaction,

Vinod Kapoor (Taxpayer) (112 Points)

04 August 2021

An individual trades in Equity.

He buys Equity Shares worth Rs 6 Lakhs of a listed Company;sells it and again buys Equity Shares worth Rs 5 Lakhs of the same company and again sells it;within the same Financial Year.
The trader is not holding any Equity of the said Company at the end of the Financial Year.
Since, the value of Equity Shares bought of the same company exceeds Rs 10 Lakhs; would it be treated as a High Value Transaction?

Reply
Follow
Share

10 Replies

Samantha J (1236 Points)
Replied 04 August 2021

Yes it's a high value txn

1 Like

Vinod Kapoor (Taxpayer) (112 Points)
Replied 05 August 2021

In this way, every trader in equity would come under the preview of High Value Transaction?

1 Like

Samantha J (1236 Points)
Replied 05 August 2021

One need not be afraid of this as you must file returns for trading as business income.There is a leeway in that you can reduce turnover with expenses!

1 Like

Vinod Kapoor (Taxpayer) (112 Points)
Replied 06 August 2021

But,sir,my income is not from Business.
It's only from LTCG and STCG from trading in Equity.
Now, kindly tell, every trader would come under the preview of High Value Transactions if he is trading in Delivery Based Equity and having LTCG and STCG ?

1 Like

Samantha J (1236 Points)
Replied 07 August 2021

If intraday trading is done it's business income not LTCG or STCG!

1 Like

Vinod Kapoor (Taxpayer) (112 Points)
Replied 09 August 2021

I am not talking about intraday trading.

Rather, Delivery Based Trading is being referred to.

1 Like

Samantha J (1236 Points)
Replied 13 August 2021

TXN above 10L are high value txn!

1 Like

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 13 August 2021

Single TXN above Rs 10 Lakh is high value?

Total of all TXN in a financial year above Rs 10 Lakh is high value?

1 Like

Vinod Kapoor (Taxpayer) (112 Points)
Replied 17 August 2021

I think if a person trades in delivery based equity,then the aggregate of multiple translations performed by him, should not be treated as 'High Value Transaction'.

1 Like