@Quicko
I have taken arbitrage position for hdfc and icici bank where I had long position in cash and short position in FNO.
I am thinking to consider hdfc and icici bank shares bought in cash as business income where I will calculate turnover of these with the sell value.
Can do this for just these 2 shares since it is actually used for business purpose with arbitrage.
Actually I have other shares too in my demat but, for them I want to consider them as STCG onky and these 2 shares only as a business income
Please go through this circular once…https://www.incometaxindia.gov.in/communications/circular/910110000000000316.htm
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Hey @pradeep_kalra,
As per the Income Tax Act and clarifications provided over the years there are 2 factors to keep in mind when deciding how to treat trading income:
- Intention of the investor
- Nature of the trade
You can treat your trading income as capital gains if your intention is to earn dividend income. Or you can treat it as income from business & profession if your intention is to earn profits from the transactions.
However, keep in mind you cannot change the tax treatment in the following years.
@Quicko
Please can you read the question. It says I want to consider some stocks as business and some as gains becase of the way they are invested. Is it possible?
Can a person be investor and trader together?
Yes you can be both investor as well as trader.
For that - it is better to operate in two different folios; because distinction between trading and investing becomes easier.
Yes, a taxpayer can be both an investor and trader and you can classify and report your trades accordingly. Do keep in mind these points. 