Profit / Loss in trading in commodites Exchange

it will be Speculative Profit/Loss.

In case it is from hedging transactions then it will be non-speculative. However, profit or loss from blank transaction,i.e, without any underlying commodity, will be speculative in nature.

1. If we deal in commdity on daily basis, then will it be treated as business income?
2. If we hold any commodity for more than 12months, then will it be treated as long term capital gain?

Dear Mr. Sumeet,

Kindly specify what do you mean by the expression 'deal in commodity'. If you wish to indicate that you trade in commodities on MCX, NCDEX, then income from it shall be treated as speculative gain. As far as second question is concerned, if you trade in commodity futures then it will be an income from speculative business and not income from capital gains.