Comment on Taxation for Traders - Introduction

jay2015 commented on 18 Aug 2015, 12:27 PM

Hi Nithin,
As I mentioned in above post, I am still not clear if i need to maintain two different demate accounts?
I read the module and also found below line from circular.

5. In the case of Commissioner of Income Tax (Central), Calcutta Vs Associated Industrial Development Company (P) Ltd (82 ITR 586), the Supreme Court observed that:

“Whether a particular holding of shares is by way of investment or forms part of the stock-in-trade is a matter which is within the knowledge of the assessee who holds the shares and it should, in normal circumstances, be in a position to produce evidence from its records as to whether it has maintained any distinction between those shares which are its stock-in-trade and those which are held by way of investment.”

But it doesn’t mention requirements to show distinction. In general case even in same demate account , if a script is there for more than a year, should’t it be consider for long term? Or the time will be counted with the latest purchase of same script, which might be an intraday only.

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