DTC- COMMENTS ON
Querist :
Anonymous
(Querist) 11 October 2010
This query is : Resolved
It is true that STT has been retained and long-term capital gains on sale of shares are not taxable.
BUT,the mischief of "adventure in the nature of trade" is continuing to play havoc with taxpayers. Many are asked to explain whether the gains are capital gains or trading profits wherein the criteria are rather nebulous.(see the latest ITAT decision which lays down certain conditions/criteria for a decision)
It is felt that, WITH THE PRESENCE OF A CLEAR-CUT DISTINCTION IN TERMS OF DURATION OF HOLDING, VIZ ONE-YEAR AS THE CUT-OFF DATE BETWEEN LONG-TERM AND SHORT-TERM GAINS, no other criteria including "adventure in the nature of trade" concept should come into play.
Unnecessary litigation and harassment of taxpayers can be avoided if a rationalization of these provisions is attempted including deletion of the offending section atleast in so far as it relates to sale of shares.
Your comments if any please.
soumitra basu
(Expert) 22 October 2010
You are requested to follow the CBDT circular in this respect wherein you will get your answer.
Querist :
Anonymous
(Querist) 23 October 2010
Thanks. But can you give me the details of the CBDT circular, date etc so that I can look it up.
Thanks again.
