-
07-14-2010 09:52 PM
Tax on Derivatives (FnO - Futures and Options)
Derivative trading is considered as speculative trading and profits earned are treated as Business income. I think the same holds true for Commodity trade as well.
This means that profits earned in derivative trading will need to be added to your Taxable income.
Tips:
As with any business, your expenses can be subtracted from Profits earned in Derivatives (FnO). Some common expenses are internet bills, infrastructure costs and so on.