Taxability of Commodity profit
This query is : Resolved
04 March 2008
Under which head the profit from commodity transaction will be taxable.Whether it will be taxable under capital gain or as a business income.
05 March 2008
profits from commodity transaction is taxable under the head "Capital Gains" and not under "Business Income". Only F & O of equity segment is taxable under "Business Income" head
05 March 2008
UNDER THE HEAD BUSINESS INCOME
05 March 2008
Commodity Dealing are mainly without taking delivery. So as per act when there is transaction for purchase and sale or sale and purchase which is entered without taking delivery it is speculation gain/loss. So, that way you have to show it as speculation gai/loss. If you are taking delivery than selling. in that way it will be normal business, so apply as per business income.
05 March 2008
To CA Shaileshjee
Under the head capital gain the defination of capital asset no where define the commodity as an capital asset.In that regard can the profit from commodity transaction be considered as capital gain.
Under the head capital gain the defination of capital asset no where define the commodity as an capital asset.In that regard can the profit from commodity transaction be considered as capital gain.
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