Hi all,
Today I came across an article in rediff.com named as Of shares and tax.
There it is mentioned that
According to Circular No 3/2006, dated 27-2-2006, trading in derivatives of securities carried out on a recognised stock exchange shall not be deemed as speculative transaction.
In the light of this circular, you can adjust your short term gain against the short term loss from the derivatives transaction.
Does that mean that day trading in derivatives of securities is treated as STCG and attracts 10% tax on net profit?
But then how day trading of NSE indices ( Nifty Future etc.) will be treated? Are Nifty Futures treated under same class ass derivatives of securities?
Anyone who can throw light on this issue will be appreciated.
Regards,
Sarit
Today I came across an article in rediff.com named as Of shares and tax.
There it is mentioned that
According to Circular No 3/2006, dated 27-2-2006, trading in derivatives of securities carried out on a recognised stock exchange shall not be deemed as speculative transaction.
In the light of this circular, you can adjust your short term gain against the short term loss from the derivatives transaction.
Does that mean that day trading in derivatives of securities is treated as STCG and attracts 10% tax on net profit?
But then how day trading of NSE indices ( Nifty Future etc.) will be treated? Are Nifty Futures treated under same class ass derivatives of securities?
Anyone who can throw light on this issue will be appreciated.
Regards,
Sarit