Gain on commodities

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2014 I have read that

1. If there is gain on sale of commodities then 60% of this gain will be treated as LONG TERM CAPITAL GAIN and 40% of this gain will be treated as SHORT TERM CAPITAL GAIN.

2. And period of holding does not matter in case of commodities like in case of securities

3. I have also come to know from another source that the gain from the commodities will be treated as income form other sources.

now I am confused and want to know that if there is gain on sale of commodities then whether it will be a short term capital gain and long term capital gain or it will be treated as income from other sources.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 March 2014 1. that is not the Indian tax law. that is US based taxation

2. as answered in 1, what you referring to is a US law. Indian law doesnt differentiate or provide for such treatment.

3. no. commodities is taxed as business income

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