transactions of shares- whether capital gain or business

[sai prasad]

dear members
how to categorise the following  vis-a-vis dept.ciruclars and judicial precedents
1. shares  purchase and sale on the single day - delivery based
2. shares purchase and sale with a gap of 20 to 60 days
3. what is the turnover for F&O transactions. whether it is the net result of the transaction

pl give your view on the above

[camanojgupta]

The ITAT have applied 30 days theory. If held for more than 30 days then it is STCG
Otherwise business
If purchased and sold on same day its speculative
F&O turnover is add up of plus and minus transactions ignoring the negative sign
This is as per ICAI and ITAT in the case of Preetinder Singh

[vsaiyar]

Dear Guptaji

Can u mail me the judgedment of ITAT u referred to in your reply at veermani13@hotmail.com?

Thank you

vsaiyar

[camanojgupta]

yes i will
i am giving citations here
30 days theory
ACIT v. Smt Kavita Devi Agarwal 48 SOT 191
Ran Mal Bhansali v ACIT 143 TTJ 65
Sugamchand C Shah v ACIT 37 DTR 345