tax on selling of shares

Dear frnds...

I do long term,short term as well as intraday share trading in cash segment and never do trading in derivatives.I use ICICI direct account.
My problem is how would i categorize my income under short term capital gain and business income while filing my income tax returns.long term capital gain's categorization is simple but the former's categorization is somewhat controversial.I have also heard that if income is close to a certain value then audit is reqiured.

I m a salaried employee and new to share trading.

Also,while calculating the cost of acquisition of shares can we include brokerage,STT,service tax,stamp duty and transaction charges and can we deduct these five items while calculating the sale value.

plz help as i m very confused about filing my tax returns...

Can I claim as deductions expenses like demat charges, service tax paid to broker, etc from income from capital gain?

You will get a deduction for the service tax paid to the broker. In fact it will be automatically added at the time of purchase and deducted from the sales income. The gain will be computed by deducting the total cost of purchase from the net sale income. However, as an individual investor, you will not get any tax deduction for the demat charges.

Website.

STT is not tax deductable. you should consult a Charted Accountant (CA) for more info as tax laws are complex.

If you make total 'gains' (profits) above a certain level when you dispose of assets, including shares, you may have to pay Capital Gains Tax (CGT). Special rules apply for identifying shares acquired in the same company at different times - to ensure you work out the correct gain or loss.