Mcx commodity trading profit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2015 I had a profit of Rs. 527000/- from MCX Commodity Trading in the FY. 2014-15. I want to know under which heads of income should I recognise the trading profit form MCX Commodity. Is it a Speculative Income or Normal Trading Income?
Also inform me the tax liability ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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04 July 2015 normal trading income...taxability will depend on the turnover....

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2015 In which heads of Income i show???
Business/ Profession///
or
Capital Gain???

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 July 2015 business income..............

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2015 if i show as a Business Income then is it mandatory to Prepare Profit & Loss and Balance sheet???

Because of my turnover above Rs. 1,00,00,000/- so that Is it feasiable to show it as an investment and show profit under the head of capital gain??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 July 2015 it also mandatory to get your accounts audited. income-tax department anyways know that you are into commodity trading. So no point in hiding it under capital gains.

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2015 Thanks a lot....

one last question...

so now can i show this as a normal purchase and sales transaction & difference as a profit/loss..???

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 July 2015 yes. that is what you need to do.