Capital gain or business income or speculative income
This query is : Resolved
06 August 2013
I want to start a pvt ltd under which I will do activities only as share trading either intraday or delivery, derivatives trading. I can also specify the same as main activity in MOA AOA Of company.
So whether the income generated from the above activities will be treated as business income? Or capital gain or speculative income? And whether I can claim expenses such as salary office rent conveyance etc against such income?
So whether the income generated from the above activities will be treated as business income? Or capital gain or speculative income? And whether I can claim expenses such as salary office rent conveyance etc against such income?
06 August 2013
1. Trading Activity and Speculative activities will be covered under Business Income. Expenses can be claimed.
.
2. Shares kept in separate demat account(s) may be termed as for investment on which capital gains income can be shown.
.
.
2. Shares kept in separate demat account(s) may be termed as for investment on which capital gains income can be shown.
.
07 August 2013
Thanks Mr Paras for reply
But i read some where( i dont remember where) that derivatives trading will be considered as speculative and no matter what type of business you are doing, it will be considered as speculative income only. is it so?
But i read some where( i dont remember where) that derivatives trading will be considered as speculative and no matter what type of business you are doing, it will be considered as speculative income only. is it so?
11 August 2013
Please refer Section 43(5)(d) to clear the doubt. Derivatives transaction taking place in recognised exchanges are not speculative transactions.
.
.
13 August 2013
Thanks CA Paras.
I will go through the section.
I will go through the section.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Supply through E-commerce Operators
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- TAN for Partnership
- Relief u/s Section 89
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- E way bill for tractors
- Specified Profession
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
