Equity trading as Business Income

[Amar Gandhi]

I was earlier filing share trading activities as STCG or LTCG as applicable. But since last two years I am doing share trading as full time activity and have frequent transactions (Intraday/FnO/cash positional/long term). As per my knowledge. I have to show FnO trading as Business income. But Can I show my cash trading activities as Business income and not as STCG/LTCG? I have read somewhere that if I shown cash segment trading as STCG/LTCG earlier, I cannot change it to Business income. Please guide

AI Summary

Business income classification for share trading permissible even when previously reported as capital gains, subject to consistent intent and documentation.
Cash segment share trading can be treated as Business Income even if earlier shown as capital gains, where the taxpayer's intention and trading frequency support business classification; derivatives and intraday trades are treated as business income, requiring consistent reporting, supporting documentation, and compliance with bookkeeping and audit obligations, while presumptive schemes may not apply to derivative and intraday activity.