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.
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.
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
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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