TaxTMI 
TaxTMI 
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.
Income chargeable under Which Head?
26 Aug 2011 
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Characterisation of share trading: trading as business yields business income; some holdings may qualify for capital gains.
When an individual's principal activity is buying and selling shares across various companies, receipts from such disposals are ordinarily business income and may be treated as normal or speculative business income depending on transaction nature; however, shares held on an investment account with intention to retain as capital assets are excluded from business stock-in-trade and their sale is chargeable as capital gains. (AI Summary)
When an individual's principal activity is buying and selling shares across various companies, receipts from such disposals are ordinarily business income and may be treated as normal or speculative business income depending on transaction nature; however, shares held on an investment account with intention to retain as capital assets are excluded from business stock-in-trade and their sale is chargeable as capital gains. (AI Summary)