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Decision on CBDT draft instruction soon
July, 04th 2006
The government is considering the comments received from various quarters on the CBDTs controversial draft instructions which proposed to distinguish between an investor in stocks and a trader in stocks for the purpose of taxation, CBDT chairman MH Kherawala has said. The last date for submitting comments on the draft instructions was June 15. Replying to a query, she said the government had received a large number of comments on the draft and these were under consideration.
Through the draft, CBDT had sought to ambiguity over defining stock market income. It was purportedly designed to prevent market players from offsetting trading income against other business income to evade capital gains tax.

The official said the government had received a large number of suggestions on the proposal to shunt out direct tax exemptions. On these, a final view would emerge only later. The government had been receiving about 10,000 responses every day on the proposals.
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