CLASSSIFIACTION OF BUSINESS ACTIVITY BY COMPNAY

[BHAVESH PATEL]

Dear ALL

I want to know  that if company carry on business of Trading, Manufacturing and also dealing in Trading in Shares(also having large income from shares trading)

Whether it has to Bifurcate income  from shares as LTCG, STCG, INTRA-DAY GAIN/LOSS or  just treated them as normal business income and set off benefit available from the loss of manufacturing activity.

Bhavesh Patel

WAITING EAGERLY FOR YOUR REPLY!!!!!!!!!

[camanojgupta]

it depends upon how the company treats its share portfolio.
If the co maintains investment portfolio and trading portfio then both CG and BI will b computed.
A lot depends upon facts of the case.

[BHAVESH PATEL]

NOW MY QUESTION IS IF COMPANY TILL DATE  SHOWN IT AS INVESTMENT ACTIVITY AND COMPUTED INCOME ACCORDINGLY.

IF COMPANY TREATED IT AS BUSINESS ACTIVITY AND THERE IS LTCL(LOSS) WHICH CAN BE SET OFF AGAINST BUSINESS INCOME COMPANY WOULD HAVE HUGE TAX SAVING DUE TO THIS.

WHETHER IT IS PERMISSIBLE  OR NOT

BHAVESH PATEL

[caabhisheksonthalia]

According to provisions LTCL cannot set off against business income.It can only be set off against LTCP

[BHAVESH PATEL]

caabhisheksonthalia

Sir as per my opinion if Trading in Shares is also main activity then there is no need to bifurcate income form such activity as STCG, LTCG or INTRADAY.

Otherwise company has to may more TAXES and company can never be in a position when its has to pay lower TAXES!!!!!!!!

     

[caabhisheksonthalia]

Boss in my opinion if you are dealer then no need but if you are an investor then it requires.Then also carry forward section to take care along with the definition of speculative in terms of IT Act.