hey i have doubt abt future and option loss is it speculation business or normal business activity and is future and option loss is business loss or loss under capital gain
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Future and option transaction
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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......
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
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