TaxTMI 
TaxTMI 
Issue of taxability of surplus on sale of shares and securities - Capital Gains or Business Income
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....the term "capital asset" to include property of any kind held by an assessee, whether or not connected with his business or profession, but does not include any stock-in-trade or personal assets subject to certain exceptions. As regards shares and other securities, the same can be held either as capital assets or stock-in-trade/ trading assets or both. Determination of the character of a....
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....curities would consititute capital gains or business income Disputes, however, continue to exist on the application of these principles to the facts of an individual case since the taxpayers find it difficult to prove the intention in acquiring such shares/securities. In this background, while recognizing that no universal principal in absolute terms can be laid down to decide the character of i....
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....fer of such shares/securities would be treated as its business income, b) In respect of listed shares and securities held for a period of more than 12 months - In respect of listed shares and securities held for a period of more than 12 months immediately preceding the date of its transfer, if the assessee desires to treat the income arising from the transfer thereof as Capital Gain, the same sh....