Income chargeable under Which Head?

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The assesse is dealing in purchase and sale of shares of various companies. Under which head he is liable to Income tax? Whether he is liable under Capital gains or under Speculative Business.The Assesse is Individual and his main activity is only purchase and sale of Shares.

AI Summary

Share Trader's Income: Business Income or Capital Gains? Clarification on Tax Implications Based on Activity Nature. An individual engaged solely in the purchase and sale of shares questioned whether their income should be taxed under capital gains or speculative business. The response clarified that since the individual primarily engages in share trading as a business activity, the income should be classified as business income. Depending on the transaction nature, it could be normal or speculative business income. However, if shares are held as investments with the intention of long-term holding, the income from their sale would be considered capital gains.