Classification of Profit from IPO, Income Tax

[viral shah]

Dear All, Pls let me know , can we classify the IPO income as business income, if yes under which section Rgds

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[DEV KUMAR KOTHARI]

In case IPO is an adventure in nature of trade, the income will be business income.

If it is adventure in nature of commerce, then income will fall under two heads 'business' - recurring income/ expenses  and 'capital gains' - on transfer of capital assets..