Profit Earned from Options is TAX Payable??

aca_trader · #11 29th October 2007, 02:56 PM

Quote:

Originally Posted by torontoguy

Hi Aca trader Thanks for your reply.

Well Once I had discussed the same question with the CA I think in 2006 and that time CA had said the Income from Derivatives is not taxable
he had said that it is speculative income and that's why it is not taxable income.

But I don't know was he right or wrong.

Thanks
Pal

Even when the derivatives income was covered under speculative income, its gains were taxable though the losses could not be set-off against profits from Non-Speculative Business.

Regards,
--Ashish

aca_trader · #12 29th October 2007, 03:04 PM

Quote:

Originally Posted by torontoguy

Hello All Friends Thank you very much for the knowledgeable discussion.

Well I have read the thread of diosys under the fire you tax related questions forum.

and in that I have found that income from the derivatives is completely taxable.

and I think there is a turnover issue of 40lac if your turnover is more than 40 lac I think then person will be considerd as a businessman and he has to pay 30% tax.

But in case if person is having turnover of rs30lac and not earning more than 40,000/- PA then also he has to pay tax? ( and that person has no other income only dependent on stocks)

Turnover of Rs. 40 lacs is no criteria in Itself. If the Income is categoried as Business Income and the turnover is more than 40 lacs, then tax audit becomes necessary.

Regards,
--Ashish

torontoguy · #13 30th October 2007, 10:19 AM

Quote:

Originally Posted by aca_trader

Turnover of Rs. 40 lacs is no criteria in Itself. If the Income is categoried as Business Income and the turnover is more than 40 lacs, then tax audit becomes necessary.

Regards,
--Ashish

Thanks for clerifications Aca trader