Comment on Classifying Your Market Activity

Abhishek Avhad commented on 13 Aug 2018, 04:25 PM

One error i noticed in the updated portion (in red).

As per the circular:

1. The assessee is free to declare his income from trading as Business Income irrespective of the period of holding
2. In case the assessee decides to classify gains on shares held for over an year as long term capital gains, he should continue to classify it as the long term capital gains itself
3. For any other cases (sale of shares within a year of purchase) the classification into business income or capital gains will depend on the facts and circumstances of the case

So the part where you have written ”It now says that an individual can decide on his own to either show his stock investments as capital gains or as a business income (trading) irrespective of the period of holding the listed shares and securities” is incorrect.

Individual can decide for himself only in case the period of holding is more than a year

View the full comment thread »