Mr. Ceaser, an Indian, derives income from various sources. In a tax year, he gained Rs. 50,000 from…

Under the Income-tax Act, 2025, profits on the transfer of shares and securities held as investments are chargeable under the head "Capital gains" (formerly section 45 of the Income-tax Act, 1961), while dividends are chargeable under the residuary head "Income from other sources", so Mr. Ceaser's Rs 50,000 from both share trading and dividends falls under "Both Income from Other Sources and Capital Gains". If the shares were held as stock-in-trade of a business the trading gains would instead be business income, but the dividends would still be taxed as other income.