India Clarifies Tax Treatment of the Sale of Listed Shares or Securities as Capital Gains or Business Income

On 29 February 2016, India's Central Board of Direct Taxes issued Circular No. 6/2016 on the tax treatment of income from the sale of listed shares or securities. The circular states that no universal principle in absolute terms can be laid down, but does provide basic guidelines for Assessing Officers as follows:

• Where the assessee itself, irrespective of the period of holding the listed shares and securities, opts to treat them as stock-in-trade, the income arising from transfer of such sh…