Is CTT alowed as a deduction & trading in commodity derivatives treated as speculative?
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Until last year there was a big question mark on whether trading commodity is speculative or not. It was clarified last year that it is not speculative and hence can be considered as a business income similar to F&O trading on the stock exchanges.
Hence income from trading commodity can be considered as a business income and CTT an expense, so if you have made Rs 1lk gross trading profits and paid Rs 10000 as CTT,brokerage,transaction and all other charges in a year, your tax liability will be on Rs 90,000 (1lk - 10,000)
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