Tax implication on Furure Options
This query is : Resolved
30 June 2010
Hi ,
Could you please explain on Tax implication on Future & Options. Whether it is non speculative business or speculative business.
If it is non speculative business then it should fall in Capital gain head or else it should go into business head.
My one of the client received a notification u/s 143 from Income tax for dis allowed the losses on Future and options.
I think we can consider this is an speculation business and if there is any loss happen we can carry forward to eight year for set off with profits.
Please advice.
Could you please explain on Tax implication on Future & Options. Whether it is non speculative business or speculative business.
If it is non speculative business then it should fall in Capital gain head or else it should go into business head.
My one of the client received a notification u/s 143 from Income tax for dis allowed the losses on Future and options.
I think we can consider this is an speculation business and if there is any loss happen we can carry forward to eight year for set off with profits.
Please advice.
Aditya Maheshwari
(Expert)
30 June 2010
W. E. F. 25.01.2006 trading in F & O of shares is non speculative business and it is taxable under the head business income.
speculative loss can be carried forward for 4 years. Non speculative for 8 years
speculative loss can be carried forward for 4 years. Non speculative for 8 years
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