taxation of a partnership firm dealing with equity tradings.

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supreeth sm (Querist)
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14 February 2009 sir, i would like to know how a partnership firm whose only business is trading in equities & futures will be taxed.since a partenership firm already pays capital gain tax on equities & futures & options, will it have to pay additional tax on the net profit made.or is it sufficient to just pay capital gain tax since its only business income is from trading in equities and derivatives.

CA.MANOJ LAMBA

CA.MANOJ LAMBA (Expert)
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14 February 2009 SIR, I WANT TO CLARIFY YOU THAT INCOME FROM FUTURE & OPTIONS ARE ONLY TAXED AS NORMAL BUSINESS INCOME . HENCE QUESTION OF CAPITAL GAINS ON FURTURE & OPTION DOES NOT ARISE.
AS REGARDS, iNCOME FROM EQUITY TRADING, IT IS EITHER TAXABLE AS BUSINESS INCOME OR ITS TAXED STCG/LTCG,DEPENDS UPON WHICH METHOD IS MOST SUITABLE TO U.
INCOME ONCE TAXED UNDER ONE HEAD OF INCOME , IT CAN NOT BE TAXED AGAIN UNDER ANOTHER HEAD.
IF ANY DOUBT, PLEASE CONTACT ME