I use to trade in Nifty futures, till today i didnt filed my returns, now i want to file returns.generally in Nifty fut i take 1 month futures after getting expiry i shift my position to next month future, like this i trade in futures.what would be the applicable income tax % on my income in this trades?is this comes in short term capital gains or long term capital gains or it comes in general business income , why bcz here i am not getting any delivery , this my total trade is non delivery.pls say clearly about this my case with tax slabs.From: shivakassa@.com
The first thing I would like to suggest you that you must file return.Not filing of return is not beneficial to you at all from any point of view. The reasons are
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if you are getting taxable income above Rs 100000[considering you have no other income] , you are breaking law .
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Even if you are incurring losses, you are losing the benefit of claim of loss for adjustment in future years.
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The trading these days are not without Client Code inserted at the time of trade. Your broker must be inserting these. So , your trade is not beyond the clutch of taxmen.
As far as income tax on your income is concerned, the trade in FUTURES or OPTION are NOW business activities and not speculation . There is no questions of Capital Gains in case of Derivative trading.
Therefore , compute your net gain or loss out of such trading in futures or option and if you happen to earn total income above Rs 1 lakh, file your return .
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