Please Help: Future & Option
Posted Date : 13-Nov-2015 , 03:52:21 pm | Posted By NAROTTAM MAHESHWARI
As Income of Future and Option of Shares under Income Tax is taxable under Business Income in that case what will be turnover, how it will be calculated and provision of section 44 AD will be applicable.
Category : Income Tax | Answers : 0 | Comments : 2 | Hits : 243
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Sandeep S Devidan
14-Nov-2015 , 12:53:35 pmDerivatives, futures and options: Such transactions are completed without the delivery of shares or securities. These are also squared up by payment of differences. The contract notes are issued for the full value of the asset purchased or sold but entries in the books of account are made only for the differences. The transactions may be squared up any time on or before the striking date. The buyer of the option pays the premia. The turnover in such types of transactions is to be determined as follows: (i) The total of favourable and unfavourable differences shall be taken as turnover. (ii) Premium received on sale of options is also to be included in turnover. (iii) In respect of any reverse trades entered, the difference thereon,should also form part of the turnover.
ATIT D. SHAH
20-Nov-2015 , 11:59:32 pmTurnover for futures and options is total of debits as well as credits (Loss as well as profit) during the financial year, and 8% will be applied on the same.