Comment on Taxation Simplified
commented on
07 Feb 2013, 12:50 PM
Hi Tushar,
There are certain things which are debatable and what we are posting is our view, please ensure that you clarify with your CA before filing your returns.
1. Commodity derivatives don’t involve the purchase and sale of commodity and hence the loss cannot be speculation loss is our view. Also according to us derivative trading on commodity after 1st April 2006 would be eligible for being treated as non-speculation within exception provided u/s 43(5)(d) of the income tax act. There are many cases which you can google for where the case has gone in favor of the argument that we have mentioned.
2. It is always better to be conservative while preparing my P&L, by this what I mean is: If as on 31st March 2013 my open position is making a loss i’d consider the loss but if it is making a gain I will not consider the gain as by the time I exit the position it could be a loss making position.
Hope this clarifies..
Cheers,