Derivatives and commodities

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2013 Are derivatives and commodities held by an assessee treated as capital assets for the computation of capital gains??

If so is indexation benefit available to them u/s 48 Proviso 2?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 December 2013 In our country these two are not treated as capital asset. Derivatives & Commodity Derivatives contracts are settled on an appointed date and are generally short term contracts.
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Indexation is applicable in case of long term capital assets only.
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