SPECULATION INCOME

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VIKAS AGRAWAL (Querist)
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23 November 2009 IS TRADING IN FUTURE OPTIONS IN SHARES AND COMMODITY A SPECULATION INCOME? IF YES THEN IF A INDIVIDUAL HAS OTHER INCOME OF RS. 50000 AND FUTURE AND OPTIONS INCOME OF 100000 AND COMMODITY INCOME OF RS 100000 THEN WHAT WILL BE ITS TAX TREATMENT?

IS SPECULATION INCOME ELIGIBLE FOR SLAB DEDUCTION? ALSO GUIDE ME FOR SET OFF AND CARRY FORWARD OF SPECULATION PROFIT/LOSS.

hshivakumar

hshivakumar (Expert)
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23 November 2009 Trading in F&O is taxable under head business income.

Pl clarify what is slab deduction.

VIKAS AGRAWAL

VIKAS AGRAWAL (Querist)
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23 November 2009 Slab deduction means income tax slab for Individuals and HUF.

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Juzer Sadikot

Juzer Sadikot (Expert)
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23 November 2009 Dear Vikas Sir,

Profit/loss on F&O in Shares listed in NSE/BSE will be treated at par with normal business profit/loss.

Profit/loss on F&O in Commodity shall be treated as speculative business profit/loss subject to certain exceptions.

Rate of tax for speculative/non-speculitive shall be same i.e. slab rate.

Speculative loss can not be offset against profit/gain of normal business and un offset loss can be caried forward upto 4 years.

Regards
Juzer