Income tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2013 Whether transaction of gold commodity done on frequent basis through recognized stock exchange which is mcx, through its stamp and seal and transaction bill, can we consider this transaction as business transaction as per Section 43(5)? please guide me

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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04 October 2013 Yes, you can considered it as business transaction, but if the case is futures and options commodities investment then only Gross gain + Gross loss shall be the turnover.

For example you purchased 1 gram gold and sold it later by this transaction you get Rs.500 gain

and another you purchased 1 gram gold and sold it later by this transaction you get Rs.200 loss.

Then your total turnover is 500+200 for the purpose of income tax however net gain is Rs.300(500-200).

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