Mcx commodity trading profit

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Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2015 I had a profit of Rs. 527000/- from MCX Commodity Trading in the FY. 2014-15. I want to know under which heads of income should I recognise the trading profit form MCX Commodity. Is it a Speculative Income or Normal Trading Income?
Also inform me the tax liability ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

04 July 2015 normal trading income...taxability will depend on the turnover....

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2015 In which heads of Income i show???
Business/ Profession///
or
Capital Gain???

Nikhil Kaushik

Nikhil Kaushik (Expert)

06 July 2015 business income..............

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2015 if i show as a Business Income then is it mandatory to Prepare Profit & Loss and Balance sheet???

Because of my turnover above Rs. 1,00,00,000/- so that Is it feasiable to show it as an investment and show profit under the head of capital gain??

Nikhil Kaushik

Nikhil Kaushik (Expert)

06 July 2015 it also mandatory to get your accounts audited. income-tax department anyways know that you are into commodity trading. So no point in hiding it under capital gains.

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2015 Thanks a lot....

one last question...

so now can i show this as a normal purchase and sales transaction & difference as a profit/loss..???

Nikhil Kaushik

Nikhil Kaushik (Expert)

06 July 2015 yes. that is what you need to do.

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2015

Thanking you...

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