Wednesday, May 1, 2013

Trading in Commodity Derivatives is not a speculative transaction:Amendment


on Wednesday, May 1, 2013

A change has been approved after discussion on Finance Bill 2013 in Lok Sabha on taxation of Future and option  trading in commodities  Finance Minister has retained the CTT (commodity transaction Tax) ,however he has agreed and inserted new clause in Finance Bill 2013 .After Insertion of new clause transaction carried out electronically on screen-based system through a member registered for trading in commodity derivatives under the FCRA are no longer be treated as speculative transaction. So after this amendment dealer who have losses in commodity trading at exchanges now can settle it with other business income. 

A new clause (e) is inserted in proviso to Section 43(5) wef assessment year 2014-15 to provide that trading in commodity derivatives carried out in a recognised association shall not be treated as 'speculative' transaction. For this purpose, an eligible transaction means:

(a) Any transaction carried out electronically on screen-based system through a member registered for trading in commodity derivatives under the FCRA;

(b) Transaction is supported by a time stamped note issued by such member;

(c) The contract note should indicate unique client identity number, unique trade number and PAN.

(check list of other amendments by Lok sabha In Finance Bill , 2013)

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