Share Trade income has to be shown as Business Income

Hi,
would like to know if it is necessary to show the share trading income as business income  and preparing balance sheet and P&L while filing returns from A.Y 15-16
My dad is a senior citizen and  his income is mainly from interests on Fixed Deposits
He also does trading in shares to a small extent and has income from short term and day trading

Regards
Asked 2 years ago in Income Tax from Greater Mumbai, Maharashtra
There are no definite guide lines to determine whether income from trading in shares is business income or otherwise. It is the matter of judgement whether it is done as a business or investment.

Day trade in shares will result in income from speculative business. 
Vijay N. Kale
CA, Hyderabad
248 Answers
4.9 on 5.0
  Talk to Vijay N. Kale
F & O profit need to be shown under the head Income from Business. In case of delivery based trading you can share the same under Short Term Capital Gain and Long Term Capital Gain. 

In case of Business Income you need to prepare P & L and B/s. and file the same at the time of filing. 

In case of intraday sales of shares the profit /loss will be treated as Speculation profit/loss.
Shyam Sunder Modani
CA, Hyderabad
1373 Answers
5.0 on 5.0
  Talk to Shyam Sunder Modani

Ask a Question

Get tax advice from top-rated chartered accountants. It's quick, easy, and anonymous!
Ask a question

Other Questions

Chartered Accountants

Abhishek Dugar
CA, Mumbai
1874 Answers
5.0 on 5.0
Lakshita Bhandari
CA, Mumbai
380 Answers
5.0 on 5.0
Rohit R Sharma
CA, Mumbai
1680 Answers
5.0 on 5.0
Keerthiga Padmanabhan
CA, Greater Mumbai
511 Answers
5.0 on 5.0
Lalit Bansal
CA, New Delhi
320 Answers
5.0 on 5.0
Pradeep Bhat
CA, Bengaluru
353 Answers
5.0 on 5.0
Vidya Jain
CA, Kolkata
343 Answers
4.0 on 5.0
B Vijaya Kumar
CA, Hyderabad
633 Answers
5.0 on 5.0
Vishrut Rajesh Shah
CA, Ahmedabad
598 Answers
5.0 on 5.0
Vishakha Agarwal
CA, Bangalore
404 Answers
5.0 on 5.0