Income from F&O

This query is : Resolved

Udit Sethi (Querist)
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07 June 2010 I am a salaried person, doing some share market transactions in cash as well as F&O segment. Please advise as to the profit (if any) from the F&O segment and also from cash segemnt is to be treated as BUSINESS INCOME or INCOME FROM OTHER SOURCES?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 June 2010 INCOME FROM OTHER SOURCES

Rahul Gupta

Rahul Gupta (Expert)
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08 June 2010 Agreed..It will form part of Income from Other sources.

Udit Sethi

Udit Sethi (Querist)
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08 June 2010 Thank you for your advise. But a bit more clarification. I had taken an advise from a CA, who informed me that the profit from F&O can be treated as BUSINESS INCOME, from cash segment can be treated as CAPITAL GAINS and the return can be filed using ITR 4 form and in the BUSINESS INCOME ward of IT dept. Kindly advise.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 June 2010 It depend on the frequency of transactions. If it is a regular business same can be treated as business income and return may be filed using ITR4. But it cant be treated as capital gains.

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