In one of the Assessment Proceedings for the Assessment Year 2018-19, The Faceless Assessment Unit has considered Income from Intraday Trading in Equity and Income from Trading in Futures & options as Short Term Capital Gain. The Assessee has considered Income from Intraday Trading in Equity as Speculative Business Income and Income from Trading in Futures & options as Normal Business Income which in my opinion is correct. Whether the below noted contention of the Assessment Unit is correct? Contention of the Assessment Unit: "Since the assessee is an Employee of a PSU, the Profit from Intraday trading in Equity…
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Facts of the case: 1. Assessee is carrying on business of manufacturing paper bags and ROI is filed u/s 44AD till AY 20-21. 2. For AY 21-22 alongwith manufacturing activity he has also done Futures and Options transactions the summary is as below: Manufacturing Activity- Turnover Rs. 9.91 lk and Profit Rs. 1.59 lk F&O - Turnover Rs. 2.24 crore and Loss Rs. 3.12 lk Assessee has prepared separate P&L for both business and common balance sheet. Query: 1. Can assessee take the benefit of Proviso to Section 44AB(a) (As nothing in Cash for F&O business- criteria met. For manufacturing…
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How to Prepare Trading & Profit & Loss Account for F &O Trading in Case of Tax Audit Futures and options (Non-speculative transactions) In Normal scenario, turnover for Futures & Options is determined as follows – The total of favorable and unfavorable differences shall be taken as turnover Premium received on sale of options is also to be included in turnover In respect of any reverse trades entered, the difference thereon should also form part of the turnover. For understanding the above Turnover is taken as “Calculated Turnover”. My question is when an assessee opts for Tax Audit in F & O…
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Intra Day Trading in Equity & Trading in Futures & options