Share's profit is Short trem capital gain or Business income

[Devedra Kumar]

My Client is an employee in share broker company and doing transaction with shares in larges volume. And ITR filed on the base of Capital Gain. It any one have any case law regarding this situation please reply..

AI Summary

Clarifying Share Transaction Profits: Capital Gains or Business Income? Depends on Intent and Case Law Guidance. An individual in a discussion forum seeks clarification on whether profits from share transactions should be classified as short-term capital gains or business income. The query is related to a client who is an employee at a share brokerage firm and conducts large-volume share transactions, filing income tax returns based on capital gains. A respondent advises that the classification depends on the facts and the taxpayer's intent. If the shares are purchased as investments, profits can be claimed as capital gains; otherwise, they might be treated as business income. Case law research is recommended for further guidance.