Classification of Profit from IPO

[viral shah]

Dear All, Pls let me know , can we classify the IPO income as business income, if yes under which section Rgds

AI Summary

Income from IPO: Business Income or Capital Gains? Classification Depends on Trade or Commerce Nature. A query was raised regarding the classification of income from an Initial Public Offering (IPO) for tax purposes. The response clarified that if the IPO is considered an adventure in the nature of trade, the income should be classified as business income. Alternatively, if it is an adventure in the nature of commerce, the income could be categorized under business for recurring income and expenses, or as capital gains upon the transfer of capital assets.