Derivatives

This query is : Resolved

umesh (Querist)
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01 August 2014 what are the provisions relating to taxation of derivatives? m totally blank abt derivatives n hv an case where client trades in derivatives..is it simply taxed like capital gains or what?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2014 Derivatives will not be taxed as capital gain but will be taxed as business income.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 August 2014 1. as seetharaman said, it will be taxed as business income

2. if the turnover is not more than 1 cr, section 44AD will apply.

3. to claim profit less than 8% of turnover or loss, you need to do the tax audit.