Mr. Ceaser, a resident individual, earns Rs. 50,000 in tax year 2026-27, partly as gains on the sale of…

Under section 67(1) of the Income-tax Act, 2025, gains from the transfer of shares held as investments are chargeable under the head Capital gains, while section 92(2)(a) makes any dividend chargeable under the head Income from other sources. Mr. Ceaser's income therefore falls under "Both Income from other sources and Capital gains". If the shares were held as stock-in-trade, the trading gains would instead be business income. These provisions correspond to sections 45 and 56 of the repealed Income-tax Act, 1961.