From last financial I am engaged with share trading profession after quitting my job; When I was a salaried person then it was easy for me to submit income tax return but in share trading I couldn't understand how to submit income tax return. In last financial year I made a profit of around 27 lacs as per the below mentioned head, could you please help me for submitting the return?
Long term profit: Rs 5,37,488
Short Term profit: Rs 18,72,324
Speculation: Rs 3,57,009
Dividend Received: Rs 87,450
Ans: As per the income tax laws, gains from sale of equity shares can be either classified as Capital Gains or Business Income depending upon various factors like period of holding and volume of transaction. Hence, if the shares are bought and sold at a relatively higher frequency, it could be taxable as business income and taxed at the normal rate of tax. (Not Capital Gains rate).
Based on the information you have provided; it appears that your income would be treated as business income. You can consult with a Chartered Accountant since this will have a significant impact to you.
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