TMI BlogIncome chargeable under Which Head?X X X X Extracts X X X X X X X X Extracts X X X X ..... The assesse is dealing in purchase and sale of shares of various companies. Under which head he is liable to Income tax? Whether he is liable under Capital gains or under Speculative Business.The Assesse is Individual and his main activity is only purchase and sale of Shares. - Reply By DEV KUMAR KOTHARI - The Reply = The assesse is (a) dealing in purchase and sale of shares (b) of various com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... panies (c) his main activity is only purchase and sale of Shares. Under which head he is liable to Income tax? Whether he is liable under Capital gains or under Speculative Business?. Ans.According to the facts given by you the assessee is primarily engaged in share trading, and this is his business and vocation. He is dealing in shares of various companies. Under these circumstances he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be considered as engaged in share trading activity. Therefore, income falls under the head business income. Dependign on nature of transactions the income will be normal or speculative business income. However, even a sharetrader can hold share on investment a/c, if the intention is to hold shares some of shares as investment that is as capital asset, then the income from sale fo such inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tmetns shall be 'capital gains'. YOu can refer to various articles and judgments referred to therein on these issues. - Income chargeable under Which Head? - Query Started By: - Venkata krishna Dated:- 26-8-2011 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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