Hello, I trade in Equity F&O on NSE via Online Brokers.Typically i hold any futures position for 3-7days. I want to ask whether profits generated through F&O are taxable as Short term capital gains(at 15%) or as Income from other sources(my tax slab).
Dear Sir,
It will be taxable as a business income and you have to pay taxes as per your slab after deducting all your expenses like demat account charges, brokerage, internet charges or any other business expenses.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
hi,
if frequency of trading is more and purpose is to gain profit, then it will fall under income from business or profession.
you can also claim expenses incurred to earn these profits. expenses like telephone expenses, consultancy exp, brokerage, etc.
you need to file ITR IV.
profits from F & O are taxable as normal business income as per Income tax provisions.
Can i Carry forward the loss incurred in such type of business activity ? or adjust it in my other business income (i have a rental business also).
if you have filed the return on time, as you can carry forward the losses and it can be adjusted with income from other heads.
you need to check if you are liable for tax audit in case of loss from such business, if your income is exceeding the income liable for tax.
Dear Sir,
Income earned from F&O transactions will be taxed under the head of Business & Profession.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Dear Sir,
Yes you can very well adjust the losses against profits but if you want to file a Loss Return then you will have to get your Income Tax Returns Audited u/s 44AB from a Chartered Accountant.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
As i can deduct expenses from the income like internet expenses, brokerage etc. , can i also deduct expenses incurred for availing Advisory services for trading ? and can that advisor be an individual with no registered firm or company ?
Yes, you can. Should take invoice from that person and preferably make payment via cheque.
Yes, you can claim that expense, it is not necessary that advisory services should be from registered firm or company.
but you should have a invoice to support it.
Yes you can setoff against other income in the year of loss.
Also you can deduct expenses as you said. If it is through cheque the it will be authenticated proof in case the advisor is not registered.