Trading in 61 Agriculture Commodities Derivatives Now Speculative !

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You must be aware that there is no transaction tax on the notified agriculture commodities trading by virtue of sub-section 7 of section 116 of under CHAPTER VII OF FINANCE ACT, 2013 . CBDT has notified a new Rule 3 of the Commodities Transaction Tax (First Amendment) Rules, 2015 by which the total list of agriculture commodities have now been extended to 61 (sixty one) items. Previously , only 23 items were notified as agriculture commodities .While the notification will certainly give relief to traders from imposition of CTT on those derivatives, it is advised that the brokers and traders in commodities derivative give attention to the computation of total income, because now the trades in additional 38 items will be speculative in nature u/s 43(5) of the Income Tax Act .

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