Clarification - Stock broker - Stock exchange

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..... Clarification - Stock broker - Stock exchange
Query (Issue) Started By: - DEV KUMAR KOTHARI Dated:- 10-1-2009 Last Reply Date:- 3-2-2009 Income Tax
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Income Tax
Share Broker is a member of stock exchange. activities relating to brokerage is regulated by the stock exchange, as he is a member of S/E. Share broker, as such is not a share trader. As broker, he purchase and sell .....

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..... shares on behalf of his cleints. Therefore, any share purchased by him on his own account should be onsidered as 'capital asset' becasuse he is not a share trader.However, if share broker himself treat or conver shares purchased by him as his stock-in-trade acccount and enter purchase, sale and stocks in trading and P & l account, then only such shares can be considered as his stock-in-trade and t .....

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..... hose shall be subject to income as business.All other shares, held as investment will result into capital gain on their sale irrespective of vouleme and frequency.An investor while selling and buying shares is not acting as a share trader, he is not known as a share trader in commercial world of share and securities. Brain storming and feedback based on experience is desirable. Reply By rishi moh .....

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..... an: The Reply: As stock broker is a member of a stock exchange, he can present himself as a stock trader as well as a stock broker. But being a stock broker, he cannot represent as a stock trader at the same time. Identity of the person will be only one at a time. If he is trading shares on behalf of his clients from his own a/c, the gain is taxable in the hands of his clients only.
Discussion .....

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..... Forum - Knowledge Sharing .....

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