Very Urgent: Taxability of derivative
This query is : Resolved
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.
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.
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.
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.
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