CII advocates methodology to erase taxpayers' disputable issues

New Delhi, Aug 12 (UNI) Industry chamber CII has said there is need for a methodology to be followed to remove disputable issues in the hands of the taxpayer and arbitrary discretion of the assessing officers.

Commenting on the recent CBDT circular on distinction between shares held as stock-in-trade and shares held as investment, CII said differentiation between business income and capital gains is a progressive step.

''CBDT's order is a single-largest progressive step as it is extremely common for any taxpayer to simultaneously engage in investment and trading,'' CII said.

It further said the classical definition of a share/security to be treated as a capital asset is where it is bought for delivery.

''The shares that have been bought for delivery (includes shares that are bought for delivery but kept with the broker, where broker is acting as an agent) will be treated as capital asset and any gains from sale of such shares will be treated as capital gains,'' it added.

The current regulations do not allow delivery in the Futures and Options segment but these contracts have to be settled in cash on the expiry date, the chamber said.

UNI