LTCG @ 10% Budget 2018 FY19

[The_Confused_Consult]

It’s always better to consult a tax practitioner when it comes to tax incidence. Saying that:

It’s not straight forward that investing is capital gains or trading is equal to business income It was dicey area till a circular came last year from CBDT. See some comments under my previous identification.

Saving on Short term Capital Gains

This circular 6/2016 is bit dicey in nature like all other tax circulars I guess. This gives a minor head room for tax payer although continue to be jurisprudence heavy! The circular does not challenged the definition of 14(2) which is definition of capital asset. So court or tribunal will continue to abide by objective interpretation of 14(2), unless the section itself amended through a statute. So the celebration is restricted:slightly_smiling: First clarification says if tax payer treat…

6/2016 makes it clear now if you want to classify business income you can continue but can’t change again and again. Same if you classify as capital gains. These are stocks for delivery based transactions.

But please note below:

Intraday profit and loss is considered as speculative loss and clubbed under business income. If you have loss you can carry forward for next 4 years. This comes from the premise the asset is not transferred in terms of ownership as demat number didn’t change. You can club BTST here as well.

Profit from derivative is not considered as speculative.But ultimately profit and loss goes and sit in business income.

This is my understanding based on last year assessment. I am not a practicing CA.