future & option trading

Tax planning 1929 views 1 replies

CA Vinay Saraf

148 Points Joined January 2008

is profit or loss from futures & options trading will be taxable under head speculation business or non speculation business ? what ever future or option purchased was not squared of in the same day.

Replies (1)

Guest

No dear. CBDT by circular clarified that trading in derivative need not be considered as Speculative Business. But it should be treated as the nature suggest. One can inlcude gain/loss from F&O transaction under the head of Capital Gain too. But nature of transaction and intention of assessee shold be seen to decide whether the transaction is business or Investment ?