Tax Hotline
December 29, 2000
Index Futures trading, treated as speculation

As per the views of the Chief Commissioner of Income tax, the income from Indexed Futures trade would be treated as a speculative income and would be taxed at normal business income rates.

As per the provisions relating to speculative income the loss arising from the same would not be allowed to be adjusted against any other income. The loss from speculation would however be allowed to be carried forward for four years.

Index futures have been legally recognised and should be taxed as Business Income or Capital Gains.

There have been representations made to the Central Board of Direct Taxes stating that Indexed Futures should not be considered as speculation income.

Source: The Economic Times, November 29, 2000

Disclaimer

The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

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Tax Hotline

December 29, 2000

Index Futures trading, treated as speculation

As per the views of the Chief Commissioner of Income tax, the income from Indexed Futures trade would be treated as a speculative income and would be taxed at normal business income rates.

As per the provisions relating to speculative income the loss arising from the same would not be allowed to be adjusted against any other income. The loss from speculation would however be allowed to be carried forward for four years.

Index futures have been legally recognised and should be taxed as Business Income or Capital Gains.

There have been representations made to the Central Board of Direct Taxes stating that Indexed Futures should not be considered as speculation income.

Source: The Economic Times, November 29, 2000

Disclaimer

The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.

Research Papers

FAQs on Setting Up of Offices in India
December 13, 2024

FAQs on Downstream Investment
December 13, 2024

Gaming Law 2024
December 12, 2024

NDA Connect

Connect with us at events, 
conferences and seminars.