Commodities related transaction

The transaction without delivery basis are treated as business income.

the loss should be declared under PGBP head.

The turnover in case of F&O transaction to be computed as below:

(i) The total of favorable and unfavorable differences (Profit/Loss) shall be taken as turnover.

(ii) Premium received on sale of options is also to be included in turnover.

(iii) In respect of any reverse trades entered, the difference thereon, should also form part of the turnover.

Please note whether the difference is profit or loss it will not make any difference, and all the difference aggregated to compute the turnover.

1. This is treated as business income.

2. Turnover is to be calculated as per guidelines issued by ICAI, (as explained earlier). It will be lesser than the 4cr.

Correct...                       first positive turnover           second same figure but negative.

In case he has any other business income than this loss can be set off with any other income except salary.

You can post the query in expert section, there this confusion will not arise. You will get authentic reply.