Query about taxability of income

How does income from trading both in cash and Futures & Options , be taxable??
Replies (3)

Since shares are specifically treated as capital assets & many of the court decisions have subscribed to this view, the cash trading in shares should be classified under capital gain tax. Similar treatment can also be given to F & O segment trading. But particularly in case of F & O, it would be S/T capital gain/loss which is akin to business income as far as the taxes are concerned. However, previously we have seen some cases wherein the F&O turnover was separately shown as "Speculative Transactions".  There is a Dept circular regarding their treatment I guess. I think we need to search it for our own benefit.

  • F&O transations are treated as normal business income.
  • Intra day trading is treated as speculative business income.
  • Cash trading in treated as business income if volume of transaction are more.

thanks.

I hope Mr. Anooj has got his answer. Thnx Nish*th for the clarification !!! But quite a few case laws have come wherein ITAT has held that mere volume of transactions cannot be the barometer for treating share income as regular business income..An investor can also have volumes in his share dealings. That does not mean that he has the business income therefrom. He will still be taxed under capital gains head  as was held under Nagindas P. Sheth HUF  vs  ACIT (ITAT MUMBAI)

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details