Income tax rate of profit commodity trading

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suchendra navrat (Querist)

27 July 2014 plz advice me, i have received profit from commodity trading 5,50,000/- whats the tax amount on profit (STG : total profit within 1 year)

Nikhil Kaushik

Nikhil Kaushik (Expert)

28 July 2014 are u trading as a business or as capital gains?

suchendra navrat

suchendra navrat (Querist)

29 July 2014 i am individual person (not brokers)

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

29 July 2014 it will be capital gain only....................

Nikhil Kaushik

Nikhil Kaushik (Expert)

29 July 2014 well commodity trading is similar to F&O. So if you are not doing delivery based trades, it will come under business income (though not speculative).

Nikhil Kaushik

Nikhil Kaushik (Expert)

29 July 2014 however, there does exist an argument that such income can also be included in capital gains but that would require that the assessee exhibit that his intention was not to trade but to gain from capital appreciation.

Further, reflecting the same in business income is specially beneficial from claiming expenses against such income and for carry forward of losses where instead of profit, loss exist in any particular year.

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