InvestorQ : My main source of income is pension. I buy shares and sell them within year (but not intraday) to earn some income. transactions happens nearly about 10 to12 times only in one FY in cash.will my gain be considered as STCG or business income
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My main source of income is pension. I buy shares and sell them within year (but not intraday) to earn some income. transactions happens nearly about 10 to12 times only in one FY in cash.will my gain be considered as STCG or business income

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Purvesh answered.
2 years ago
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it's really a good question. As we all know that STCG is taxed, when the scrips are sold within a year and LTCG are the ones for the scrips which are kept for more than a year. As per my knowledge, if the stocks are sold within a month of purchase then it is considered as Business Income & if the listed scrips are kept for more than a year considered to be Capital gains.
Also, business income includes gains arising from Intraday & FNO trading. I have also heard that there was circular announced by the government which says that if an investor assumes any scrips as stock in trade, then it will be taken as Business Income and scrips kept for more than 12 months is considered as Capital gains.
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