Hello, diosys!
Good Morning to you. i have some issues relating to share trading and want to learn from you, if you would permit that.
A large number of shares of DLF fell in one's lap by luck. i bought just 50 shares way back in 1994 at par value. Later, against fully convertible debentures, a sum of Rs. 5000 got converted into 500 shares of Rs. 10 nominal value, making the total as 550 shares. Bonus shares issued @ 7 shares for every share made the number of shares held as 4400. Split of Rs. 10 shares into Rs. 2 each made the total number of shares as 22000 of Rs. 2 each. Net cost of each share was only Rs. 0.25.
In January 2008, when the DLF shares were valued around Rs. 1100-1200 per share, the holding became worth about Rs. 2.5 croes. This made one book a plot and an apartment as one does not have own roof yet to live in. Quickly, however, the capital value of Rs. 2.5 crores melted down to Rs-40-50 lacs. Paying for the property installents yet keeping something for maintenance became a major poblem.
It became necessary to make an effort to regain the capital worth. So share trading was started. The scale of activity has been pretty extensive, in terms of extent and quantity per transaction. One goes mostly long but,at times, short too. The arena is mostly limited to Equity but some times Derivatives also.
i do not have any CA for help and operate on my own on line from home through Internet trading. India Infoline's Trader terminal is used for this purpose.
Being a tax compliant person, there are a number of issues emerging. The first question that arises is: Would i be considered as a trader or an amateur for the purpose of ITax, that is, whether i would have to pay for Capital Gains or for PL?
Once this issue is sorted out, there wouild be further issues that would be raised later, again if you permit.
i shall be grateful, if you (or some other expert) can help me.
Hugs
Rajen