Hi,
Does any body know if day trading is treated as speculation when we file a return ? I know that upto last financial year trading in derivatives was considered speculative income and was treated as such. This year that is not so. But what about day trading in stocks and day trading in derivatives ? What is the rate of taxation that it attracts ? Can it be treated as trading activity and profit/loss clubbed with other income or should it be treated as speculation and profit or loss treated accordingly ? I am asking this because my auditor says that speculative losses cannot be adjusted with profit/loss from other business and they can only be carried forward upto 7 years.
I request other members of this forum who are knowledgeable in such matters to help out.
Regards,
Kalpana.
Does any body know if day trading is treated as speculation when we file a return ? I know that upto last financial year trading in derivatives was considered speculative income and was treated as such. This year that is not so. But what about day trading in stocks and day trading in derivatives ? What is the rate of taxation that it attracts ? Can it be treated as trading activity and profit/loss clubbed with other income or should it be treated as speculation and profit or loss treated accordingly ? I am asking this because my auditor says that speculative losses cannot be adjusted with profit/loss from other business and they can only be carried forward upto 7 years.
I request other members of this forum who are knowledgeable in such matters to help out.
Regards,
Kalpana.