Trading in Futures and options

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jinkesh jain (Querist)
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09 August 2010 1)Income from trading in futures and option is Taxable under which head - capital gains or Business & Profession????
2) If taxable under Business & Profession - Whether Speculative or Non Speculative?

Please Reply quoting some authentic source like some circular or guideline issued on this

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 August 2010 1) Taxable under the head "business/profession".
2) Non-Speculative transaction.

Refer proviso (d) section 43(5) of the IT Act,1961.

CA Punit

CA Punit (Expert)
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09 August 2010 agreed..

PANKAJ KHURANA

PANKAJ KHURANA (Expert)
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09 August 2010 agreed

jinkesh jain

jinkesh jain (Querist)
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10 August 2010 M VERY MUCH THANKFUL FOR PROMPT REPLY...AND I EXPECT SAME ASSISTANCE FROM YOU ALL GOING FORWARD

jinkesh jain

jinkesh jain (Querist)
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10 August 2010 suppose an assessee has income from F&O as his main source of income, then how his turnover is to be calculated for audit purposes...

CA Punit

CA Punit (Expert)
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10 August 2010 For Tax Audit, Turnover means aggregate of the Absolute value of Net pay offs (whether positive or negative) from the transactions in F&O.

Lets say.. if a person earns Rs. 20 L from a transaction in F&O & looses Rs. 21 L in another transaction, his net pay off is loss of Rs. 1 L but his turnover is Rs. 41 L (20+21).

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