Profit on derivatives & futures

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Sowmya.S.Balan

Sowmya.S.Balan (Querist)
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27 March 2012 Dear Sirs

Whether profit on derivative transactions & futures taxable under capital gain or any other head of income? please help me

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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28 March 2012 under the Business / Profession Head

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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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

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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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

CA MANOJ GUPTA (Expert)
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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

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