F & o income tax liability undeshort term or business income

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)
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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)
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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)
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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)
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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)
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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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