Tax for derivative income.

Hello,

I just heard about the income tax for derivative income It is considered as bussiness income. I am wondering if I manage to make around 10 Lk profit by trading in nifty futures only in last financial year with turn over of 5 cr. how much tax will I have to pay ?

Any help appriciated....

http://www.traderji.com/futures/42286-trading-nifty-future.html

hi.
Ur turnover does not matter in this. if u have a net profit of 10 lacs, it would be treated as any other business income, and u would come into the highest tax bracket. of course u can diduct various expnditures from this income, that u may have incurred. also u can take deductions if u have invested in any tax saving schemes.as is the case with any othr income.
regads

Anurag

Hello,

First of all thanks for the answer I have couple of questions I will one by one . As it business income govt banks should grant me business loan to invest in derivative market is it ?

Regards,
Nifty

http://www.traderji.com/futures/42286-trading-nifty-future.html

hi.

govt. banks have a stringent criteria for providing loans.they would not provide a loan for derivative trading. It is not imperitive for the bank to provide loan for any business. (even if it has been profitable for a year or few yrs) the bank would first asess the risk and then decide.

regards

Anurag

Hi Anurag,

Thanks for the answer.

Regards,
Nifty

Hello,

Can you join chat room of traderji ?

Happy trading...
Nifty.

http://www.traderji.com/futures/42286-trading-nifty-future.html

hi
ill join the chat room just now.

Hello,

Please come chat room I found you exited.

http://www.traderji.com/futures/42286-trading-nifty-future.html

i have traded in futures and the resultant loss is Rs.2 lac.I have other business income of Rs.3 lac. can it be adjusted against the other business income ?