FACTORS WHICH DECIDE THE INCOME IS STCG OR BUSINESS INCOME
There is confusion between short time capital gain and business gain in the share trading on daily basis. As the market is moving up and down recently, investors use a simple funda, buying on low and selling on up on daily basis, which results in profit and loss. But these type of transaction attracts income tax. But the problem is that either it is a short time capital gain/loss or business profits/loss. The laws of India mostly believe on the recent tax cases. One of the recent tax case about these type of transaction decided by the income tax tribunal in Mumbai. In that case, the assesse was dealing in business of share trading. He was using his own money for purchasing and selling the shares and there was not a single transaction in which the assessee sold the purchase share on the same day, means he was taking delivery of the shares. The assessee gained on the share market and it was decided that - The share wh...