Very Urgent: Taxability of derivative

Save Share

This query is : Resolved

Ankit Himatsingka (Querist)
Follow

22 December 2010 Hello,

My client is a salaried professional. But he also trades in Futures & Options market (F&O). The trades can be classified completely under speculation are not hedges.

During the current year, he has earned profits from F&O.

Will this income be treated under Capital Gains or under Business Income?

If treated under Short Term Capital Gains, is the benefit of 80C and 80G (donations) applicable for this income?

Thanks in anticipation of a prompt response.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

22 December 2010 Income from Derrivatives and F&O :

Section 43(5): Non Speculative Business Income.
It is not treated as Capital Gains.
Chapter VIA benefits are available as in the case of normal business income.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now