Profit on derivatives & futures
This query is : Resolved
Sowmya.S.Balan
(Querist)
27 March 2012
Dear Sirs
Whether profit on derivative transactions & futures taxable under capital gain or any other head of income? please help me
Whether profit on derivative transactions & futures taxable under capital gain or any other head of income? please help me
28 March 2012
under the Business / Profession Head
CA MANOJ GUPTA
(Expert)
29 March 2012
It depends
If its a case of share then business income
If its commodity futures follwoed by deliverey then also business income
If its commodity futures not followed by delivery then speculative income
CA MANOJ GUPTA
JODHPUR
09828510543
If its a case of share then business income
If its commodity futures follwoed by deliverey then also business income
If its commodity futures not followed by delivery then speculative income
CA MANOJ GUPTA
JODHPUR
09828510543
29 March 2012
Dervatives and futures always non delivery. Therefore, it shall be treated as speculative income. But it will be comes under business head only sir
CA MANOJ GUPTA
(Expert)
29 March 2012
dear Mr Shiva
in case of commodity one can take delivery th MCX or NCDEX
In case of share futures section 43(5) provide that it will be business income but not so in case of commodity futures and hence gains are treated as speculative gain
There is huge diff between business income and speculative income
in case of commodity one can take delivery th MCX or NCDEX
In case of share futures section 43(5) provide that it will be business income but not so in case of commodity futures and hence gains are treated as speculative gain
There is huge diff between business income and speculative income
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