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

Classification of IPO proceeds: treated as business income when IPO is an adventure in trade; otherwise split with capital gains.
Classification of profit from an IPO turns on the activity's character: if the IPO participation is an adventure in the nature of trade, gains are business income; if an adventure in the nature of commerce, receipts split into recurring business income and capital gains on transfer of capital assets.