Business income or capital gain

This query is : Resolved

Nisha Soni (Querist)
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21 March 2017 Dear Sir,

We need your guidance on the following issues:

1. Whether income / loss from F&O is capital gain income or Business Income?
2. Whether 44AD is applicable on F&O transactions?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 March 2017 1 It's business income.
2 44AD is available on F&O.

Nisha Soni

Nisha Soni (Querist)
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22 March 2017 Sir, please provide any legal fact related to this.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 March 2017 See the link.
http://www.livemint.com/Money/GvW3JB9PpYhvw6dvHEENjI/How-to-report-FO-trading-in-your-income-tax-return.html

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 March 2017 44AD can be opted for business income.

Nisha Soni

Nisha Soni (Querist)
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23 March 2017 Hello Sir,
Case 1
An individual :-
Salary = 2,50,000/-
1. he invested in F&O on 02/12/2016 Rs. 1,00,000 and sold on 02/02/2017 for Rs.1,50,000.
OR
2.If he frequently purchased and sold F&O. Total purchase cost Rs.2,00,000 and Total sale price Rs. 3,00,000.
OR
3.If he invested in Intra-day,gain of Rs. 60,000.
tax implication.