Taxability of income from derivative market

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Hiren bhayani (Querist)

28 December 2012 I want to know how share market income get taxable in following cases..

If i Trade in "Future". [For both intraday & long {i know it don't give delivery, let say 30 day{if it makes difference}]
(A) Would it come under the head "Capital gain" or "Business profession" ?

(B) What about STT, Stemp duty, Service tax, turnover tax, SEBI charge. I mean these all expense can be claimed?

(C) What about commodity market's Income? (I mean how it would be taxable)

(D) What about section 44AB ??? and can i claim all expenses stated about for the limit of 60 Lac or 1 Crore?

Thanks in advance...:)

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

01 January 2013 (A) The Income from futures traded in a recognised stock exchange is considered under the head Business & Profession.
.
(B) Expenses mentioned by you can be claimed against such income.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

01 January 2013 (C) commodity Exchange income is also considered under the head of Business Income , but it is treated as Speculative Income,

Unless conditions prescribed under clause (a), (b) or (c)the proviso of of Section 43(5) are satisfied.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

01 January 2013 (D)
In case of Futures, the profit or loss made in each future, by you is added for the purpose of deciding turnover U/s 44AB. In case of Options- Premium paid or received for the options settled on striking date is also considered as part of turnover.
Suppose in F1, you have made profit of 2
and in F2, you have made loss of -23, turnover will be calculated as 25.
.

Hiren bhayani

Hiren bhayani (Querist)

02 January 2013 Thank you very much sir..

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