Taxability of Share Market Transactions

Special provisions
Section 94 (1),(2) & (3)
• Provisions to curb tax avoidance
– Securities sold and then repurchased
– Beneficial interest in securities transferred during the yr
• Applicable to business as well as capital assets
• Provisions not applicable, in case:
– There is no avoidance of income tax or
– That the avoidance was exceptional & not systematic
with no such avoidance in the previous 3 yrs