hey i have doubt abt future and option loss is it speculation business or normal business activity and is future and option loss is business loss or loss under capital gain
10 Replies
Nilesh Jain
(Assistant Manager)
(1064 Points)
Replied 27 January 2011
Future N Option PRofit and loss are treated as business profit & loss.
the government has done this to boost this sector of investing.......
Pankaj Arora
(Learner)
(3134 Points)
Replied 27 January 2011
it’s a business loss and can be sett off with business income.
Sonam Bidasaria
(CA)
(770 Points)
Replied 27 January 2011
Proviso to Sec 43(5) of Income Tax Act specifically excludes future and option from its scope. Hence, profit and loss from futures and options will be business profit/ loss.
Prateek
(B.Com(H) PGDBA CA Final)
(436 Points)
Replied 27 January 2011
Agree. More interesting would be how to do Accounting for F & O in Tally...can any one explain..this
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 27 January 2011
Trading in F & O in shares & currency is non speculative business income whereas F & O in commodities is speculative business income as per Section 43(5).
For guidance note on accounting for F & O visit this link
/share_files/guidance-note-on-accounting-for-futures-options-28916.asp
However the same will not apply from next year from which AS 30, 31 & 32 or IFRS will apply.
sankar Padarthy
(Proprietor)
(21 Points)
Replied 26 July 2011
Hi,
In view of the Latest Ammendment in 44 AD . Please clarify if Audit U/s 44AB is required when there is loss in F&O
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