Income tax on profit from commodity trading in india
नमस्कार मित्रो। एंजेल वन के इस podcast में आपका स्वागत है ।
Commodity trading is a great way to earn money for people who can analyse complex patterns and predict the future prices of certain goods. These certain goods include crude oil, corn, gold, silver and other commodities.
Inn commodities ke prices per international factors ka bada influence hota hai. Isliye a commodity trader ka news junkie hona zaroori hai. Commodity trader co political, economic and social factors ka close analysis karne se hi commodity prices ke future behaviour ki insight milegi.
Commodity trading ke profits ko do tariko se declare kiye ja sakte hai. Before we talk about how you can declare profits arising from commodity trading while filing your income tax returns, let's discuss what you can't declare such profits as. You cannot declare these profits as long term capital gains because commodities are traded through derivatives like futures and options. Future contracts and option contracts do not last for more than a year. Aur agar koi trade ka maturation period 1 saal se kam hai, toh usse short term capital gains ya phir business income maana jayega.
If you file your profits from commodity trading as short-term capital gains then a flat tax rate of 15% will be applied. Per agar aap apne profits ko business income ke column ke niche file karenge toh applicable tax rate vary karega. Depending on your income tax slab the tax rate can vary from Nil to 30%.
Yah sunkar Shayad aapko Lage ki commodity trading ke profits ko short term capital gains declare karne mein hi chaturai hai. But there are a lot of benefits to capturing your profits from commodity trading as business income. Let's discuss a few of these benefits.
Firstly if you declare your commodity trading profits as business income, then you can claim a lot of deductions for things like the depreciation of electronic tools you use to do your trading. Agar aap apne profits ko business income ke column mein file karenge to aapko commodity transaction tax per bhi relief mil sakta hai. On the other hand if you file your profits as short term capital gains then you cannot avail these deductions.
The second reason for why filing your profits as business income is preferable to filing the them as capital gains has to do with managing your losses. No one gets their predictions right a hundred percent of the time. Commodity market mein har business venture ki tarah kabhi Na kabhi aapko loss ka Samna karna padega. If you file your profits as capital gains then you can adjust your losses against current or future capital gains. However if you file your profits as business income then you can adjust your losses against your capital gains as well as other sources of income such as rent, interest income, et cetera. Therefore choosing business income gives you greater flexibility when it comes to offsetting your losses. In this case of setting your loss would mean a decrease in your total taxable income, which will slash your tax burden.
Business income can be further divided into speculative and non speculative income. Profits from trading that involved a physical transfer of the commodities is called non speculative income. Aur agar aapne derivatives ke through physical delivery liye bina commodities trade kiye hain to aise trades ke profit ko speculative profit maana jaata hai.
Remember that speculative losses in the commodity market can only be offset against speculative gains. Meanwhile non speculative losses can be adjusted against both speculative and non speculative gains. Further, while speculative losses can only be adjusted in the current financial year and for the next 4 years, non-speculative losses can be adjusted in the current financial year and for the next 8 years.
चलिए, एंजेल वन की तरफ से आपको आज के अलविदा. ये podcast शेयर करना ना भूलियेगा - याद रखियेगा की ज्ञान बाटने से बढ़ता है । और फिर अंत में तोह financial markets एक ऐसी university है जिसमे कोई professor नहीं, सब students ही है ।
नमस्कार मित्रो। एंजेल वन के इस podcast में आपका स्वागत है ।
Commodity trading is a great way to earn money for people who can analyse complex patterns and predict the future prices of certain goods. These certain goods include crude oil, corn, gold, silver and other commodities.
Inn commodities ke prices per international factors ka bada influence hota hai. Isliye a commodity trader ka news junkie hona zaroori hai. Commodity trader co political, economic and social factors ka close analysis karne se hi commodity prices ke future behaviour ki insight milegi.
Commodity trading ke profits ko do tariko se declare kiye ja sakte hai. Before we talk about how you can declare profits arising from commodity trading while filing your income tax returns, let's discuss what you can't declare such profits as. You cannot declare these profits as long term capital gains because commodities are traded through derivatives like futures and options. Future contracts and option contracts do not last for more than a year. Aur agar koi trade ka maturation period 1 saal se kam hai, toh usse short term capital gains ya phir business income maana jayega.
If you file your profits from commodity trading as short-term capital gains then a flat tax rate of 15% will be applied. Per agar aap apne profits ko business income ke column ke niche file karenge toh applicable tax rate vary karega. Depending on your income tax slab the tax rate can vary from Nil to 30%.
Yah sunkar Shayad aapko Lage ki commodity trading ke profits ko short term capital gains declare karne mein hi chaturai hai. But there are a lot of benefits to capturing your profits from commodity trading as business income. Let's discuss a few of these benefits.
Firstly if you declare your commodity trading profits as business income, then you can claim a lot of deductions for things like the depreciation of electronic tools you use to do your trading. Agar aap apne profits ko business income ke column mein file karenge to aapko commodity transaction tax per bhi relief mil sakta hai. On the other hand if you file your profits as short term capital gains then you cannot avail these deductions.
The second reason for why filing your profits as business income is preferable to filing the them as capital gains has to do with managing your losses. No one gets their predictions right a hundred percent of the time. Commodity market mein har business venture ki tarah kabhi Na kabhi aapko loss ka Samna karna padega. If you file your profits as capital gains then you can adjust your losses against current or future capital gains. However if you file your profits as business income then you can adjust your losses against your capital gains as well as other sources of income such as rent, interest income, et cetera. Therefore choosing business income gives you greater flexibility when it comes to offsetting your losses. In this case of setting your loss would mean a decrease in your total taxable income, which will slash your tax burden.
Business income can be further divided into speculative and non speculative income. Profits from trading that involved a physical transfer of the commodities is called non speculative income. Aur agar aapne derivatives ke through physical delivery liye bina commodities trade kiye hain to aise trades ke profit ko speculative profit maana jaata hai.
Remember that speculative losses in the commodity market can only be offset against speculative gains. Meanwhile non speculative losses can be adjusted against both speculative and non speculative gains. Further, while speculative losses can only be adjusted in the current financial year and for the next 4 years, non-speculative losses can be adjusted in the current financial year and for the next 8 years.
चलिए, एंजेल वन की तरफ से आपको आज के अलविदा. ये podcast शेयर करना ना भूलियेगा - याद रखियेगा की ज्ञान बाटने से बढ़ता है । और फिर अंत में तोह financial markets एक ऐसी university है जिसमे कोई professor नहीं, सब students ही है ।
