^®
TaxReply India Private Limited

Login     GST Library Tour

TaxReply India Pvt Ltd

🔒

Join on twitter

Join GST Group 121

Desktop
Tablet
Mobile

coverage of 44ad in case of profit from future n options

One of my colleagues having profit and loss while having transacting in future n option in a recognised stock exchange ad through registered broker. My query first is it a speculative transaction and. Second is the turnover rule if 44ad will apply to dis transaction. I.e. 8% tax on total turnover.

Dear Gurpreet,

Future and options in shares are covered by proviso (d) to section 43(5) and hence not a speculative trasanction for the purpose of Income Tax Act.

Yes 44AD applies to above business also. Turnover for this purpose shall be calcuated as total of positive and negative difference of all the contracts and not the total value of contracts.

If you have any question, Pl post the same.

Kind Regards
TaxReply.com
 

28
Apr

GST Calendar GST Diary
2021 2022 2023 2024	January February March April May June July August September October November December

S

M

T

W

T

F

S

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

28 Apr

30 Apr