What is the nature of income under which transaction in securities will be taxed?
Profit and loss from purchase and sale of securities will be taxed under the head of income from “Capital gains”, provided such securities are held as investments by you. In case these securities are held as stock-in-trade i.e. if you are in the business of buying and selling securities, the profit and loss from purchase and sale of securities will be taxed under the head “Profits or gains of business or profession”.
