Hi
There is confusion in terms of taxation.
I only do equity (delivery based transactions).
I have booked long term gains of 70k and short term gains of 95k. In short term, frequency of transactions is more. Is this possible that long term gains can be shown as long term capital gains and short term gains as business income?
Please help @Quicko
Due to the frequency of transaction and option to deduct expenses you want to declare Short Term Gains as Business income.
You may do so without a problem. But whether you are doing Short Term or Long term underlying equities you deal in are the same.
Some people book Short Term Capital gain as business income and long term as Long Term Capital Gains which the Income Tax officer may find contradictory.
Also in ITO Vs Suresh Babu Vasireddy (ITAT Hyderabad) case the guy was a real estate agent and booking profits as Capital Gains to save taxes and also make use of Indexation. The court ordered him to treat it as income from business.
Hence I suggest you to take decision at your own descrition.
Hi @Falco777 , it isn’t advisable to show long term gains and short term gains individually in different brackets. You can show your gains under income- capital gains or under business income. You can shift to choosing business income in subsequent years if you pursue full time trading. But post that if you cant to shift back to part time investing and want to go forward with capital gains, you will have to provide adequate proof.