Comment on Classifying Your Market Activity

Shah commented on 26 Jul 2017, 08:55 PM

Hello sir!

I am filling my returns for the first time this year, and I’ve been trading since 2014.
Since my income was not taxable and turnover was less, I did not file the ITR return.

Since trading is the only thing I do, I want to declare trading as Business (and also as investor if possible, for LTCG).

My question is,
1)If I treat the profit and losses from trading as business income, and suppose “If I hold some shares for more than 1 year, then can I declare it as LTCG, to take tax exemptions? ”
Meaning, if I purchase say 100 Reliance shares to do delivery based trading, but if it’s value goes down and I continue holding it for more than 1 year, then can I claim it as long term capital gain later when I sell? Because I bought with intention to trade and it accidently turned into long term holding. Please guide me on this.

2) Shall the Dividends earned on the shares I trade be except from tax completely? Or it will be taxable if I declare trading as business?

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