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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Price inclusive or exclusive of GST while made entry in P& L Account
- Tds on commission charges
- Minimum tax payable to file Updated return
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Applicability of GST on Salary Reimbursement Component
- Dep. as per companies act
- Renovation exp. in flat by family member
- UDIN ISSUE
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
ARTICLESHIP
21 September 2026
CA Article Assistant
KK & Company Chartered Accountant
Pune
CA Inter
View Details
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared
Getmyca Consultant Pvt Ltd
New Delhi
CA Inter
View Details
ARTICLESHIP
07 September 2026
CA Articles
Kothari Jain Patil & Chartered Accountants
Pune
CA Inter
View Details
CCI
Pro
CAclubindia
