Tax slab rates for F&O gains

#1

Hi If i earn 9 lacs from FNO trading and have 5 lacs as interest income for FY2019-20 how will it be taxed. Interest income is taxes on slab basis ( 5% , 10%) etc. How is FNO income taxed (assuming turnover is less than 1 cr and profit is 9 lacs)??? Will FNO income be clubbed with interest income
and then slab rates are used or is FNO income taxed at straight 25% . thanks @Quicko

#2

Interest from fixed deposit and recurring deposits are taxable while interest from savings bank account and post office deposits are tax-deductible to a certain extent. But they are shown under income from other sources.Whereas profits from F&O is shown under income from business. So they will not be clubbed.
F&O income is taxed according to your applicable tax slabs.

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#3

Hi @deepak2508,

Interest income is clubbed with F&O income, and is then taxed at the slab rate.
Secondly, for F&O trading, the income will be taxed on the profit you earn i.e. INR 9 Lakh.

#4

@quicko assume someone has 4 lakh loss from FnO which he wants to set off and 4 lakh as agriculture income which is exempt.
In this case will the assesse allowed to carry forward business loss of 4 lakh.

#5

Hi @Prakhar_Agrawal,

Since Agricultural income is an exempt income, loss from F&O trades cannot be set off against it.
F&O Trades are considered as a non-speculative business activity, and hence F&O losses can be carried till 8 financial years.

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