Taxpayer need to decide between capital gains or business income?

I learn quicko workforce’s article that taxpayer has to decide on (first time share market taxpayer) between how he needs to deal with promoting or shares – both has enterprise earnings or brief time period capital acquire …is that this nonetheless true?

What if taxpayer has each earnings from promoting of shares (resulting from this bull run) and now have choices/intraday earnings ?

How can one file tax return …I don’t assume he can file two separate – one for capital acquire and one for enterprise earnings (choices/intraday) right? @Quicko @TAXIQ.IN @Taxreturns @CA_umesh @Ca_Omprakash_Jain @CA_Guru_Madevu

Hey @curiousvi

A taxpayer can file only one return on one PAN. And that return shall point out all of the incomes of the taxpayer from totally different heads. It’s on the discretion of the taxpayer to deal with Earnings from Fairness as Enterprise Earnings or Quick time period Capital Positive factors.

So in the event you want to proceed to deal with earnings from supply primarily based buying and selling of shares as Capital Acquire the identical shall be talked about beneath the pinnacle Earnings from Capital Positive factors. And the revenue/loss from choices/futures/intraday buying and selling shall be reported beneath the pinnacle “Earnings from Enterprise & Occupation”

Hope this helps!

Okay so taxpayer can elect learn how to deal with brief time period acquire from supply primarily based buying and selling – between capital acquire vs enterprise earnings.

Let’s say she select to deal with as enterprise earnings than there is not going to be 2 totally different heads …however in the event you needs to decide on it has capital positive aspects than there might be 2 totally different heads in a single return (not 2 returns)However I additionally learn that if she chooses to deal with as enterprise earnings (as an alternative capital acquire) she has to proceed to do this for coming years …she can’t change that.

Additionally, what’s your advise …ought to she deal with as enterprise earnings or capital acquire?

Hey @curiousvi

Sure, it’s on the discretion of the assessee to decide on the remedy of delivery-based buying and selling as capital positive aspects or enterprise earnings. If he/she considers supply primarily based buying and selling as enterprise earnings the identical shall be talked about beneath the pinnacle “Earnings from Enterprise & Occupation”

As per the CBDT Round, the remedy of earnings from the sale of shares must be constant every year. The one situation is to observe the identical methodology constantly in subsequent years. The taxpayer shall not be allowed to undertake a opposite strategy in subsequent years.

Be taught by Quicko – 8 Mar 19

Deal with Sale of Shares as Capital Acquire or Enterprise Earnings | Be taught by Quicko

Examine learn how to deal with earnings from the sale of shares as capital acquire or enterprise earnings as per the clarification issued by CBDT.

Estimated studying time: 5 minutes

Hope this helps!

i opted for stcg in previous 2 years and that i opted for enterprise earnings in final 12 months…what ought to i do…many cas say that you just cant present it as capital acquire…and i’ve confirmed it as pgbp final 12 months…i’m actually confused