saurabh lahoti (audit assistant) (33 Points)
01 July 2010HIIII EVERYBODY,
I WANT TO KNOW ABOUT CALCULATION OF INTRADAY TRADING INCOME OR PROFIT. PLZ ANSWER ME SOON........THANKS!
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 01 July 2010
dear friend
intra day trading is speculative business income.
regards
tarun rustagi
Amir
(Learner)
(4016 Points)
Replied 01 July 2010
HI Tarun,
I think by mistake u have mentioned it as "Non speculatice Income".
Intraday trading of shares/securities will be treated as Speculative Business Income...Its loss can only be set off against speculative income....further carry forward is allowed for 4 years...
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 01 July 2010
Agree with Amir. It is speculative business as defined u/s 43(5) and not non speculation business income.
CA Parag Shukla
(Practicing Chartered Accountant)
(153 Points)
Replied 02 July 2010
Ya Amir is Right.......
Jyoti Verma
(Article)
(27 Points)
Replied 02 July 2010
As per Sec 43(5), transation in F & O segment (not for the sake of hedging) on which delivery is being not taken are in framwork of Speculation & in intraday as well no delivery is taken therefore it should also be covered in "Speculation transaction ".
Bhaskar
(Designer)
(21 Points)
Replied 02 July 2010
Similar to the question asked, I've also been trying to find answer to whether intraday trading income should be considered as business income or stcg.
I read somewhere that in order to be a day trader tax wise you must do extensive trading (600 plus times), also got a reference of CBDT Circular4 2007 (maybe a obsolete reference now) stating that its on discretion of assessing officer to categories the income based on various factors.
So, If I have a intraday trading profit of 10000 and stcg of -15000 (with primary source of income as SALARY), should I be filling my return in ITR2 or ITR4?
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 02 July 2010
sorry to all members and specially amir bhai.i am ready to accept that i was post a wrong reply above and amir bhai it is not by mistake.actually that time i was thinking about the derivatives and a confusion occures.i agree with all members it is speculative business. i modified my reply now.
thanks & regards
tarun rustagi
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 02 July 2010
| Originally posted by : Jyoti Verma | ||
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As per Sec 43(5), transation in F & O segment (not for the sake of hedging) on which delivery is being not taken are in framwork of Speculation & in intraday as well no delivery is taken therefore it should also be covered in "Speculation transaction ". |
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This is the best answer. But the anwer of Amit with this answer will complete the query
CA Mihir Shah
(Working with Suresh Surana & Associates)
(231 Points)
Replied 02 July 2010
| Originally posted by : Shudhanshu Agrawal | ||
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Originally posted by : Jyoti Verma As per Sec 43(5), transation in F & O segment (not for the sake of hedging) on which delivery is being not taken are in framwork of Speculation & in intraday as well no delivery is taken therefore it should also be covered in "Speculation transaction ". This is the best answer. But the anwer of Amit with this answer will complete the query |
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rightly said by shudhanshu agarwal
CA Shiv
(Business Controller)
(2987 Points)
Replied 02 July 2010
agree with my all friends...
But if you doing trading daily and dont have any other business than it wont be considered as speculative income and u can treat it as a business income..... It have to be calculated on the basis of the the volume of transactions and the amount involved.... Even if its less transactions than it will be considered as sshort term capital gain and not speculative......
pls refer to this also:
/experts/audit-380765.asp
CAclubindia
