CA Finalist (Article Assitant) (289 Points)
02 June 2011Hello Friends,
Here is my query!
A Company engages in the business of trading shares, Currencies, Futures, Commodities.
What are the tax rates/ tax rules which apply, if such company makes a :
1. Profit on Currencies
2. Profit on Futures
3. Profit on Commodities
Thank in advance !!
Arvind Sharma
(ACA)
(1432 Points)
Replied 02 June 2011
all type of Incomes you mentioned will be taxed at Normal rate applicable to company ie 30% even profit on trading of shares listed will also be taxed @ 30%. (Sec 111A & 10(38) will not be applicable, because such shares are not Capital Asset.
However, in case of Profit on sale of Investemnt, there may be application of Sec 111A (in case of short term Capital gain on sale of listed shares, the same will taxed @ 15%) or Sec 10(38) (in case of Long term Cpaital Gain on sale of Shares listed, the same will be exempt).
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 02 June 2011
Income taxable at slab rates in all cases.
However
1. Profit on Currencies - Non speculation business income
2. Profit on Futures in shares - Non speuclation business income
3. Profit on Commodities - Speculative Business income.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
