The budget is likely to be declared in July 2024. The government is taking representations from various business chambers like FICCI, PHDCC, and there are speculations that the government may tax the income from Futures & Options as speculative income.
ð Current Scenario
- Income from Futures & Options are taxed as business income.
- Taxed at normal slab rates of the individual.
- Loss from Futures & Options may set off against other business incomes as it is normal business income.
ð Expected Scenario
- Income from Futures & Options may be taxed as speculative income.
- Loss from Futures & Options cannot be set off against other business income. It shall be allowed to set off against other speculative incomes like intraday trading income.
ð¯ Intention of the Government
The government wants to discourage investors from entering into F&O after getting information from informal sources rather than research. This is being done to protect the sentiments of customers from losing money based on unreliable information.
ð¬ What are your thoughts on this expected change? Should the government consider moving F&O to speculative income? Share your thoughts in the comment section below!
ð Reminder
Every company except a government company is required to file DPT-3.
