Point of consideration for All :-
This is wrt Income Tax on F & O Trx , Audit , Books of Accounts, Losses C/f......etc......
Normally , if a person deals in Share Market, he may have income from following ......
a) Intra day......
b) STCG....
c) LTCG...
d) F & O..Trx.....
Trx of a) will be Speculative Trx.....
Trx b) & c) R Short term or Long term Invt Profit & taxable at special rate of 15% or 10% respectively.....
Trx d) Relates to Future & Option Trx.., where for the IT point of view it is non-Speculative Trx....
Under a) Losses of Speculative Trx can be set off , only agst Speculative gain , or otherwise can be C/f for next 4 years......
Under d) , since for IT point of view , it is Non-speculative Trx , and to be treated as Normal Business Income, Losses if any can be Adjusted agst Profit from any other Business / Profession income......or from any other heads (like IFHP, CG, IFOS...except from Salary income for the same Acct year) or otherwise C/f. For next 8 years ...........
Q1) F&O Trx , Taxable under which head of income...
A1) PGBP........
Q2) BoA is Compulsory for F&O Trx , for Indl/HUF ????......
A2) Yes , if Income above 2.5L or TO above 25L...........
Q3) Audit is Applicable , for F&O Trx ????
A3) if GTO is above 1 Cr.....or say above 5 Cr for AY 2020/21 & say 10 Cr for AY 2021/22).....Under new Proviso of sec 44 AB (if condition of 5% , of Total Receipts/ Pymt is satisfied, and GTO is less than 5 or 10 Cr , then No Audit) ......
Q4) How to arrive for GTO for F&O Trx ?????
A4) calculate gain or loss , (Trade wise/Trx wise) , Sum of positive & Negatives to be considered as GTO , for Audit point of view........
Q5) if say GTO is 90L , there may be Profit or Loss, No any other Income , whether Audit Applicable ??...
A5) No , Since Basic Limit of section 44AB......
Q6) if Say GTO is btw 1 Cr to 2 Cr , Section 44 AD can be opt ????
A6) Yes........
Q7) Say GTO , above 1 Cr to 10 Cr , for AY 2021/22, can Proviso of Section 44AB (if condition Satisfied) is Applicable???.
A7) Yes , No Audit , either , overall Profit or Loss ........assuming only F&O Trx.........
Q8) whether Interest / Remuneration recd by partner , is eligible for Setoff agst Losses of F&O Trx ????..
A8) in my opinion , yes..