Profit from intraday share trading in futures and options

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This query is : Resolved

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This discussion clarifies the tax treatment of profits from intraday share trading in futures and options. It explains that such profits can be classified as business income, capital gains, or speculation, depending on the transaction's nature. Key points include the inability to deduct staff salaries from share income, the need to keep share trading separate from other businesses like iron and steel, and the fact that GST registration is generally not required for share trading. It also touches upon declaring profit on turnover and the non-claimability of GST on share bills.

ARUN GUPTA

ARUN GUPTA (Querist)

29 May 2022 We have profit from share trading? Will this profit be treated as business income? What expenses are allowed in share trading profit in Income tax?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

29 May 2022 Share trading profit may be in nature of business or capital gain or speculation, it depends on nature of transaction, purchase and sales details.

ARUN GUPTA

ARUN GUPTA (Querist)

29 May 2022 Put and call options trading in bank nifty. What is the income nature?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

29 May 2022 Same is in nature of Business Income

ARUN GUPTA

ARUN GUPTA (Querist)

29 May 2022 Can wr claim salary to staff from shares income? please clarify?

ARUN GUPTA

ARUN GUPTA (Querist)

29 May 2022 Will shares purchase and sale be clubbed with my iron and steel purchase and sales?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

29 May 2022 No you cant deduct salary from share income and shares profit and business profit to be shown separately,
Also you have to declare 6% or 8% profit on turnover from shares sales

ARUN GUPTA

ARUN GUPTA (Querist)

29 May 2022 Will shares purchase and sale be clubbed with my iron and steel purchase and sales?

ARUN GUPTA

ARUN GUPTA (Querist)

29 May 2022 We have gst no for steel business. Share business is done in mumy personal name.. Do we need gst nofor share trading?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

29 May 2022 No GST number required for share trading,

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

29 May 2022 It is better if share trading and iron steel business will be kept separate

ARUN GUPTA

ARUN GUPTA (Querist)

29 May 2022 Iron and steel business is under gst proprietorship firm and shares trading done under personal proprietor name. Will income from steel business and shares business be clubbed together?

ARUN GUPTA

ARUN GUPTA (Querist)

29 May 2022 Please suggest how to show steel income and shares income.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

29 May 2022 Yes same is clubbed.................

ARUN GUPTA

ARUN GUPTA (Querist)

29 May 2022 In Balance sheet how will I show?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

29 May 2022 Same is shown in p & L