Speculative Business Income for Individual

This query is : Open

NewUser (Querist)
Follow

29 August 2009 Hi,

I will be day-trading futures contracts in a foreign market, using an individual account with a brokerage based abroad.

My understanding from reading multiple posts in this great site are:
1. Since I will be trading futures and options, my income will be classified "Income from Business".

2. Since the exchange will not be recognized by SEBI and/or there will be no PAN account number on the transaction note, etc.., the income will be further classified as "Speculative"

Given I will be trading using an "Individual" account, and will be trading from home AND my income will be classified as "Business" - Can I file the my Income tax returns as an "Individual" or do I need to be a "Sole Proprietor"?

In either case, will I need to pay any other taxes in addition to the Income tax?

Thanks,
Gaurav

P.S. I reside in the state of TamilNadu.

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
Follow

29 August 2009 Ye. This is Treated as A Business Income.

NewUser

NewUser (Querist)
Follow

30 August 2009 Hi Chintan,

Thanks for the prompt response. However, could you please elaborate on my queries in my original post?

>> Can I file the my Income tax returns as an "Individual" or do I need to be a "Sole Proprietor"?
>> In either case, will I need to pay any other taxes in addition to the Income tax?

Thanks,
Gaurav

Upgrade to CAclubindia Pro. Subscribe Now!