INCOME/LOSS FROM SHARE TRANSACTIONS

[GANAPATHY PADMANABHA SARMA]

Asseessee doing day trading trhough registered share brokers, investing some margin money in thousands or lacks,  but the share broker transacting in crores in equities, nifty etc.  Whether the gain or loss from the above transactions is be treated under the head capital gain or business or profession?  How to calculate the profit or loss from the transactions.  All the transactions are suferred STT.?

AI Summary

Day Trading Income: Capital Gain or Business Income? Experts Discuss Classification and Tax Treatment. Check Relevant Circular. A participant inquired about the classification of income or loss from day trading through registered share brokers, specifically if it should be treated as capital gain or business income. One expert suggested that if the transactions involve futures or options, they should be classified as business income. If not, income could still fall under business income if the shares are not acquired for dividends or capital appreciation. Another expert recommended reviewing a specific circular to determine the tax treatment and noted that the query was too general for a precise answer.