Trading in Equity(shares ) as business Income

Dear Sir,
If I am regularly buying and selling share’s  and also day trading , and also trading in F & O and considering trading as business ,my income from all the trades will be considered as business income and there shall be no short term capital gains.

In this case,please clarify if the the turnover in Equity is the total sell value of the trades
or is it the total of profit plus loss of each trade as in fno.

From audit under section 44AB point of view ,
It is easy to achieve more than 8 % of the turnover  as profit in f& o but rather difficult to achieve in equity in case the total sell value of the shares is considered as the turnover.
(For some it may be the other way round)

Add Comment
1 Answer(s)

There can be short term/ long term and business income all together. It’s not necessary if you undertake F & O trade you can’t have capital gains. You can have both together.

Know turnover and it’s classification, in case of delivery trade it takes full value for a trader and for investors it doesn’t comes under business head.

So before classifying your trader, investors or investor cum trader give thoughts for your long term plans

TaxIQ Answered on June 27, 2015.
Add Comment