Comment on Taxation Simplified

Sibi Chakravarthy commented on 16 Jan 2014, 05:51 PM

Hi Nithin,

So thoughtful of u to post on one of the confusing topics.Keep up the impressive work.
My query:
the post clearly says that I have to take a stance either as an investor or trader, before looking at the taxes I should pay.
1)What is the thumb rule that distinguishes a trader from an investor?
2)I am a beginner.So , my capital,profits,losses,turnover, everything is less than 2lacs. I buy equities only and hold some stocks for more than a year…while some stocks i sell off within a year….Now, case1:I am an investor.So i need to pay 15% taxes.
case2:I am a trader.So My total income is less than 2lacs…so i am exempted from taxes.
which of the above two cases is apt?

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