Nifty and commodity gold

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This discussion clarifies whether trading in Nifty F&O and commodities can be classified as business activities for tax purposes. It addresses the requirement for a Tax Audit Report, noting it may not be needed if over 95% of transactions are digital. Crucially, it confirms that both F&O and commodity trading, when conducted with same-day square-offs, are considered non-speculative business losses, not speculation losses.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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01 October 2021 Assessee
deals in Bank Nifty F & O Business - sales Rs.1,49,843/- and purchases Rs.1,65,811/- Loss Rs.15,968/-
He also deals in Commodity (same day square off) - sales Rs.3,34,43,668/- and purchase Rs.3,40,49,689/- Loss Rs.6,06,021/-
Total from both activity sales Rs.3,35,93,511/- and purchases Rs.3,42,15,500/- Loss Rs.6,21,989/-

My questions are whether both above activities can be shown as business - Trading in F & O and
whether Tax Audit report is required ?