Taxation on Share Trading

[Jignesh Desai]

In share trading , in case most or all of the trades of an individual are short-term in nature (meaning the shares were sold before completion of one year after purchase) , after the threshold of what amount of turnover , can the income tax authorities deem the profit earned from such trades as 'Business Income' ?

Or , is it that , because the individual has traded in his own assets (shares) only , irrespective of whatever turnover he does , he can always show the profit earned from such trades as 'Capital Gains' in his Income Tax returns ?

Also , how would the income tax authorities deem such such profits as (meaning Capital Gains or Business Income ) , based on size of turnover , in case most or all of the trades are long term in nature (meaning the shares have been sold after having been held for a period of more than one year) ?

Also, how would the profits be taxed in case they were earned from trading in unlisted shares ?

AI Summary

Clarification Sought on Taxation of Short-Term and Long-Term Share Trading Profits: Business Income vs. Capital Gains? An individual inquires about the taxation of profits from share trading, specifically whether short-term trades (shares sold within a year) can be classified as 'Business Income' based on turnover. The query also seeks clarification on whether profits from trades in personal assets can always be declared as 'Capital Gains' regardless of turnover. Additionally, the individual asks how profits from long-term trades (shares held for over a year) and trades involving unlisted shares would be categorized and taxed by income tax authorities.