Future & Options Gainers: 2 Quick Tax Planning Tips


There are recent developments affecting tax treatment of derivative transactions in India. It is perhaps known to everyone derivative transactions or in other words Futures and Option trades are now treated as business activity as per amendments to section 43(5) of the Income tax Act. The changed scenario for the treatment of gains or loss from future & Options transactions or equity derivative trades  require a relook on the tax planning facilities available to a tax payer. After examining the issue and Tribunal’s and Courts view on certain issues related to taxation of derivative transaction, two tax planning methods are presented before readers :

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