New Delhi, June 18 -- For years, one of the most contentious questions in stock market taxation has been where to draw the line between an investor and a trader. The answer can significantly alter how gains and losses are taxed, yet there is no fixed rule on how many transactions are too many or how frequently shares can be bought and sold.

A recent ruling by the Income Tax Appellate Tribunal (ITAT), reported by The Economic Times, has once again brought the issue to the fore. In the case of noted investor Dolly Khanna, the tribunal rejected the Income Tax Department's attempt to treat her Rs.54.23 crore short-term capital loss as a business loss, holding that the volume of transactions alone cannot determine whether a taxpayer is an inv...