F & o income tax liability undeshort term or business income

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2015 SIR

I MADE A PROFIT OF 25 LACS FROM F&O FOR THE A.Y 15.16 AND I M INDIVIDUAL TAX PAYER SO MY INCOME WILL ATTRACT SHORT TERM CAPITAL GAIN OR WILL BE TREATED BUSINESS INCOME . OTHER SOURCES OF INCOME IS COMMISSION .

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)

11 August 2015 It is treated as business income. Also check 44AD Provision as to profit you are showing is above 8% of turnover.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 August 2015 It will be treated as business income.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2015 PROFIT IS MORE THAN 8% OF TURN OVER SO WHAT TO DO? FILE RETURN UNDER 44AD? WHAT ABOUT OTHER INCOME ?CAN U GUID ME SIR

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 August 2015 You can declare 8% profit on turnover u/s 44AD provided your turnover is less than 1 crore and show other income also.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

12 August 2015 1. Turnover is the absolute value of profit and loss of F&O transactions.

2. If such amount > 1 crore or the end result ( profit- loss) 8%, 44AD can be opted.

4. In either case the income is normal business income and not speculative income or capital gains.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

12 August 2015
Clause 2 may be read as follows:-

2. If such amount > 1 crore or the end result (profit - loss) < 8% 44AB audit is required.

Clause 3 some how disappeared which may be seen as under.

3, If turn over as in 1 above < 1 crore and profit as said in 2 above < or = 8% , 44 AD can be opted.

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