Tax rates

[Klewtar]

Hello,

What is the tax rate structure for commodities?

Is it the same as shares which is 10%???

 

[aakritikathpalia]

get connected with Invest Care Ovt. Ltd.

 

[aakritikathpalia]

get connected with Invest Care Pvt. Ltd.

 

[trader15]

Hello,

What is the tax rate structure for commodities?

Is it the same as shares which is 10%???

No. Short term tax of 10% is only for equities. Commodities will be taxed at your tax bracket : highest being 30%, same as derivatives trading, as it is speculative income

 

[virgogagan]

If i am having 1lac rs in my trading account and my monthly turnover is 1cr rs, than there is any need to pay tax ??
Plz reply

 

[trader15]

If i am having 1lac rs in my trading account and my monthly turnover is 1cr rs, than there is any need to pay tax ??
Plz reply

Tax is on profits earned irrespective of turnover. You can have turnover of 1 crore, and still in loss, hence no tax to be paid

And you can have turnover of 1 lakh and profit of 90000 and liable for tax.

 

[NinjaTrader]

No. Short term tax of 10% is only for equities. Commodities will be taxed at your tax bracket : highest being 30%, same as derivatives trading, as it is speculative income

Commodities Futures OR Derivatives Trading is NOT considered as Speculative Income by the Tax Department but as Business Income.

 

[trader15]

Commodities Futures OR Derivatives Trading is NOT considered as Speculative Income by the Tax Department but as Business Income.

It really doesn't make difference : speculative or business income from taxation perspective: For someone doing trading as second option along with regular day job.

He will always be taxed at highest bracket he is in.


How about options trading: Is it speculative or business income as per tax rules

And btw: what taxation difference does it make for person doing full time trading : speculative tax bracket versus business income

 

[NinjaTrader]

It really doesn't make difference : speculative or business income from taxation perspective: For someone doing trading as second option along with regular day job.

He will always be taxed at highest bracket he is in.


How about options trading: Is it speculative or business income as per tax rules

And btw: what taxation difference does it make for person doing full time trading : speculative tax bracket versus business income

Speculative transactions are transaction in which a contract for the purchase or sale of any commodity, including stock exchange & shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips. Further, if these non-delivery transactions are undertaken through recognised stock exchange, then these would not be considered as deemed speculative transaction and would be normal business transactions.

 

[NinjaTrader]

How about options trading: Is it speculative or business income as per tax rules

Futures and Options trading done on Recognized Exchanges like MCX and NSE, BSE etc. are all treated as business income by income tax department.