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query in respect of Derivative Tansaction P&L .

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Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2010 Dear members,

I have a query in respect of Derivative Tansaction P&L .

Suppose Mr X has two sources of income for the A.Y. 2010-2011 (ITR 4 applicable, assessee comes under books are not maintained)

a) Income from Restaurant Business RS 126000 - It comes under Profilt and Gain Head.

b) Income from Derivative Transation P&L Rs.-76000(loss) - where such loss being shown ? whether it is speculaive or not ?

& also if we shown such Derivative transaction under Profilt and Gain Head than it automatically setoff Restaurant income in our ITR 4.

So, plz suggest me a proper guidance for correct treatment of such case in ITR 4

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 July 2010 Income from derivative transactions is non-speculative profit with effect from 01/04/2006 as per proviso (d) of section 43(5) of the Income tax Act,1961.

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