Query relating to capital asset

Save Share

This query is : Resolved

Sanjay (Querist)
Follow

10 May 2013 Respected Members,
Is Transfer of Gold Contracts in MCX Subject to Capital Gain? Is Gold Contract in Commodity Market is Capital Asset ?
Please Reply..

Shivang Chokshi

Shivang Chokshi (Expert)
Follow

11 May 2013 normally such contracts are part of trading done by you thru commodity exchange..

thus if you have multiple transactions you can consider it to be part of business transactions.

if it is thru recognized exchange and a legal contract note, the same is a valid business and will not be speculative

Message likes : 1 times

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

25 June 2013 Generally in this trade there is no physical deliver only the papers are transferred and the holding period is also very short. If holding period is less then 1 month then it is business income and if it is above 1 to 2 months than short term capital gain but the same is to be treated as business income. If holding period is above 3 years then yes it is capital gains

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!