Distinguish between income under the head 'Capital Gains' and income under the head 'Profits and Gains of Busi

Exercises · Q9

Q. Distinguish between income under the head 'Capital Gains' and income under the head 'Profits and Gains of Business or Profession'.

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Basis	Profits and Gains of Business or Profession	Capital Gains
Source of income	Carrying on a trade, commerce, manufacture, or profession/vocation, as an ongoing activity	Transfer (sale/exchange) of a capital asset
Nature of the underlying asset	Goods held as stock-in-trade, bought/sold in the ordinary course of business	A capital asset (e.g. land, building, shares, securities) NOT held as stock-in-trade
Frequency	Recurring, from repeated trading/business transactions	Can arise from a single, even one-off, transfer
Computation	Business receipts less allowable business expenses	Sale consideration less cost of acquisition/improvement (and indexation, where applicable)

Q.Distinguish between income under the head 'Capital Gains' and income under the head 'Profits and Gains of Business or Profession'.