Taxability of income from derivative market

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Hiren bhayani (Querist)
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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)
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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)
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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)
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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)
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02 January 2013 Thank you very much sir..

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