How Mutul Funds are Taxed ? Details is as below from FY 2025-2026 (AE 2026-2027)
Thanks! Are you a CA?
Can short term capital gain from IPO (sold in a day or two of listing) be shown as business income instead of STCG?
Especially if yearly income is < 12 L?
Not a CA…
No it is part of STCG
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@amish no. If stock trading and investment is your business (only source of income) then only it can be shown in ITR 3. Even audit cases may apply as per limits. Not recommended.
But this CBDT circular (point 3a) clearly mentions that it is up to Assessee to decide.
So I was looking for more clarity.
No your interpretation is wrong.
The point 3a says what exactly i said. If assessee chooses to treat shares trading as stock-in-trade then those income can be treated as business income.
So IPO dealing is not a stock in trade?
I buy on day 1 (allotment date) and with intention to sell in next 2 days (listing day)
That is what I believe makes it a trade.
As per me trading is to buy something and then put it on sell and then sell it as soon as you get a buyer.