Comment on Taxation for Investors

sai commented on 06 Mar 2016, 07:10 AM

I exercise only Equity Delivery and would like to know what would constitute high-frequency-trade in order to determine business or capital gain income. You have mentioned that, number of “trade”s few times per week on average over whole year can be viewed as business income rather than investment.
Q1. Does “trade” mean pair of buy and sell ?
Q2. If single buy or sell exercise can be seen as “trade”, does this mean 104 (2*52) equity delivery order execution per year i.e 2 times/week will be termed as business income ? (or can it be < 3 times/week i.e. 155 per year)
best regards

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