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CAPITAL GAIN

Pankaj (Manager) (295 Points)

23 November 2009

Sub : - Capital Gain

Hi sir,

I need of your suggestions about following points:

1) F & O Profit / Loss: - What is tax treatment of F & O Profit / Loss.

2) Short Term & Long Term Capital Gain: Please clarify me about tax treatment of S T & L T Capital Gain for F Y 07-08 & 08-09. Please explain me proviso to Sec. 111A.

Thanks

Regards

Pankaj Sonar

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2 Replies

CA. Megha Topiwala (Job) (1534 Points)
Replied 23 November 2009

(1) Profits / (Loss) of F & O are treated as speculative business.... hence its gain or loss from business.

(2) (a) Short Term Gain / Loss U/s 111A is taxed @ 10% and 15% resepctively for F.Y. 07-08 and 08-09 ....

(b) If its long term gain / loss from securities on which STT is paid... any gain or loss is exempt u/s 10(38)

(d) if long term gain is other than point (b) then it be taxed at the special flat rate of 20%....

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M.M.SURANA (Director -Taxation ) (532 Points)
Replied 23 November 2009

I agree with Megha for STCG/LTCG .And Profit & Loss from F&O and derivative pl. refer sec 43(5) as amended fro the AY.2006-07 It is not a speculative business .