Future and option transaction

Future N Option PRofit and loss are treated as business profit & loss.

the government has done this to boost this sector of investing.......

it’s a business loss and can be sett off with business income.

Agree with C.A. Nilesh & Pankaj

Proviso to Sec 43(5) of Income Tax Act specifically excludes future and option from its scope. Hence, profit and loss from futures and options will be business profit/ loss.

Agree. More interesting would be how to do Accounting for F & O in Tally...can any one explain..this

Agree with C.A. Nilesh & Pankaj

Trading in F & O in shares & currency is non speculative business income whereas F & O in commodities is speculative business income as per Section 43(5).

For guidance note on accounting for F & O visit this link

/share_files/guidance-note-on-accounting-for-futures-options-28916.asp

However the same will not apply from next year from which AS 30, 31 & 32 or IFRS will apply.

agree wid nilesh......

i too agree

Hi,

In view of the Latest Ammendment in 44 AD . Please clarify if Audit U/s 44AB is required when there is loss in F&O