NO MORE STT trap on exercised In the money options

General
86

After Sep 1st, if deep ITM is illiquid on the exchange, yeah it is best to exercise as the STT increase would be incrementally small

2 Likes
87

ARe this somewhat related about binary options or something like that if you can ? I do not really see it how it will going, cause they are probably banned already anyway no matter how hard you will try with promoting them. See my point ? I do not.

89

My query is - When option contract is exercised on Expiry day, we need to give physical delivery of stocks from our Demat Holding to broker for physical settlement. Is giving physical delivery of stocks consider as Capital Gain/loss or F&O income?
As Giving physical delivery from Demat Holding is considered as ā€œSale of stocksā€.
So, is it needed to report in ITR as Capital income or F&O income ?

90

It is considered capital gain/loss.

@TheGouda @Ruchi_Porwal

1 Like
91

thank you for your response sir.
As per This [Article] Physical settlement of derivative contracts will be treated as an equity transaction.

  1. Does Profit/Loss from giving physical delivery reflect in Equity section of zerodha Tax P&L Report?
  2. I would like to know futher, whether Giving physical delivery of shares reflect in AIS/TIS under Sale of securities section?.. If Not - then, do we need to report Gain/loss under F&o income? @Quicko
92

Hi @IndianTrader1,

Yes, when you give physical delivery of shares, such transaction will reflect in your AIS under the sale of securities section.

Since it involves the actual sale of shares, the gain or loss should be reported as Capital Gains.

Hope this helps!