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Tax on income from trading in derivatives.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2012 Hi All,

Please help me out in understanding the taxability of income from trading in derivatives(options). For Eg: If i have earned income of Rs 10 Lakhs from trading in options, how would this be taxed? will it be taxed under Income from Business?
please also suggest the Tax Planning for this income.

CA. Hari Kishan

CA. Hari Kishan (Expert)
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09 February 2012 If the intention if investment, then it shall be capital gains.. should the intention be frequent trading and no. of transactions are also many and regular.. that would more tend to be called as a business activity.. accordingly you could decide.. My view is to offer the same as business income should there be regular and many transcations..

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