QUERY

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raman (Querist)
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01 January 2010 SIR, PLZ ANS THE FOLLOWING QUERIES :

1. IF A PERSON IS 'PART TIME' ENGAGED IN INVESTING IN OPTION DERIVATIVE THEN INCOME,IF ANY,IS TAXABLE UNDER PGBP OR CG

2.IF PGBP, THEN IS IT SPECULATION INCOME OR NORMAL BUSINESS INCOME

3. SHALL HE HAVE TO MAINTAIN BOOKS OF A/C IF INCOME EXCEEDS 1,20,000 /-( WHAT IF SPECULATION INCOME? )

4.WHAT TYPE OF BOOKS ARE REQUIRED TO MAINTAIN AND HOW IT IS RECORDED IN BOOKS

5.FOR SEC. 44AB , LIMIT OF 40 LAKH IS TAKEN FOR CONTARCT VALUE OR GAINS ONLY BECAUSE BUYER OF CALL/PUT OPTION HAS TO PAY PREMIUM AND ON SETTLEMENT ONLY DIFFENCE IN PRICE IS SETTLED.( SEC 44AB APPLICABLE , IF SPECULATION INCOME)

6. IF IT IS SPECULATION BUSINESS INCOME THEN AUDIT IS REQUIRED OR NOT

THANKS IN ADVANCE

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 January 2010 1. PGBP.
2. Normal business income.
3. Yes.
4. Such books of account from which ITO could vouch the conceeded income.
5. Profit and loss added together is the turnover for the purpose of 44AB.
6. See my answer in 2 herein above.

raman

raman (Querist)
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05 January 2010 thank you sir
but answer point 4 in detail

and if the person is engaged in option trading occassionally part time then it is pgbp or cg , plz tell

thank you

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