Taxability of Trading in Futures & Options as per IT Act

This query is : Resolved

K.AMBIKAPRASAD (Querist)
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24 January 2009 SIR,
CAN YOU PLEASE EXPLAIN THE TAXABILITY OF GAIN/LOSS ARISING FROM TRADING IN FUTURES & OPTIONS.

AS PER SEC43(5, THEY ARE NOT TREATED AS SPECULATIVE TRANSACTIONS. THEN UNDER WHICH HEAD OF INCOME SHOULD IT BE CONSIDERED- BUSINESS INCOME OR SHORT TERM CAPITAL GAINS.

ALSO PLEASE EXPLAIN ABOUT THE TREATMENT OF LOSS ARISING THEREFROM SUCH TRANSACTIONS (SETOFF, CARRY FORWARD ETC).

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 January 2009 Income/loss will be considered under the head Income from Business/ profession.
Carry forward/setoff will be allowed just like other business losses.

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