CA Hardik Vyas (Practicing Chartered Accountant) (130 Points)
01 February 2011Dear All,
My Client has Income From Arbitrage (Stock Market), So whether it is to be taken as speculative income or not?
In Which Head does it fall?
Please assist me in detail.
(Arbitrage is the transaction of buying some scriptts in NSC and selling in BSC or vice versa)
My client does all the transactions on his ID i.e. on his name, STT and other taxes plus brokerage, all are paid.
so which provisions are applicable to this? please give your suggessions in detail.. please..
Member
(Management)
(325 Points)
Replied 01 February 2011
Normally under the head speculation business, unless derivatives are involved.
Instead of thinking as to which head the income will fall, eliminate other heads and then see what is left.
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 02 February 2011
U/s 43(5) it will be treated as normal business transaction.
CAclubindia
