You can consider yourself an investor when – Buying and selling stocks after taking delivery to your DEMAT account If the frequency of transactions (buy/sells) is high, it is best to consider them as trades and not investments. If considered as trades, any income is non-speculative business income , whereas if these are investments, then it falls under capital gains . Keeping this in perspective, you may have few questions – What is long term? What is considered high frequency of transactions (buy/sells)? We discussed this in the previous chapter, but just to refresh your memory – there is no set rule from the IT department to quantify ‘frequency’ or determine ‘long term’. As long as your intent is right, and you are consistent across financial years in the way you identify long term or high frequency, there is nothing to worry. Do note, if you are indulging in equity delivery based trades as frequent as a few times every week , it wou...
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