Financial Daily from THE HINDU group of publications
Sunday, Sep 14, 2003
Financial Daily from THE HINDU group of publications Sunday, Sep 14, 2003 |
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Investment World
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Income Tax Markets - Income Tax Columns - Tax Talk Treading into day trading T. Banusekar
What is to be taken as turnover in such a case? Is it the gross sales or the net income from such sales? Under which head would such speculative income be taxed? Are there any special rates of tax on such income for individuals? Is it necessary for a summary of all the transactions duly certified by a chartered accountant to be furnished along with the return? Amarender Reddy, Dinesh V. Nair Reply Net earnings, and not gross receipts, should be taken as turnover for this purpose. Reference may be made to the decision of the Tribunal in M/s Babu Lal Enterprises vs ACIT (ITA No. 6031/Mum/1996, Mumbai Bench). Such income would normally be taxed as business income, particularly where such trading is done on a regular basis. No special rates of tax are prescribed in respect of such incomes for individuals. The normal rates of tax will apply to such incomes as well. It may, however, be mentioned that speculation loss can be set off only against speculation income of the same year and thereafter carried forward and set off against speculation income within eight assessment years immediately succeeding the assessment year in which the loss is first computed. There would be no need to file a certified copy of the entire transactions. It would suffice if a profit and loss account is drawn up and enclosed along with the return.
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