Futures & options of stock transactions taxability

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2011 Whether the payment or receipt of Mark-to-Market is taxable? If yes, under which head.

What should be done of those contracts which are not squared-off at the end i.e. on 31st March? Whether it should be kept as is it, or we need to book notional sales, or else we bring the contract to the value as on 31st March.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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02 August 2011 Net profit or loss is taxable under the head business income.

In case of profit + loss exceeds Rs. 60 lakhs then you are liable for audit u/s 44AB.

for accounting purpose see this link
https://www.caclubindia.com/share_files/guidance-note-on-accounting-for-futures-options-28916.asp

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