Comment on Classifying Your Market Activity

Nithin Kamath commented on 11 Jun 2017, 03:03 PM

Sudipta, hmm.. The loophole here is that we can show all stocks held for over 1 year as LTCG to get tax exemption and those lesser where you made a loss as business loss. This essentially is a way to cause a loss to exchequer. I know CA’s who avoid taking this route, but I also know a lot of our clients who do and haven’t had an issue. Deciding on declaring your business as trading or capital gains just to benefit the way you are saying, is not advisable. Best to declare as STCG itself.

Btw, if your total income is below 2.5lks, STCG doesn’t apply. You wouldn’t need to pay the 15%.

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