How gains through margin trading facility transactions are taxed in India
1 month ago

How gains through margin trading facility transactions are taxed in India

Live Mint  

The margin trading facility is a powerful financial instrument. The tax treatment of this interest depends on whether the income from MTF transactions is categorized as capital gains or business income. While interest expenses on borrowed funds are capped at 20% of dividend income for dividends, no specific provision under the Income Tax Act allows the deduction of interest expenses from capital gains. Interest deduction for business income For traders treating MTF transactions as business activities, interest on margin funding is deductible as a business expense. Filing of tax returns: Gains and losses from MTF transactions must be reported under the appropriate income head in the income tax return form.

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History of this topic

How NRIs in US, Canada are taxed on capital gains from Indian MFs
2 years, 1 month ago

How NRIs in US, Canada are taxed on capital gains from Indian MFs

Live Mint  

A non-resident Indian — a citizen of India residing outside the country, defined as per the Foreign Exchange Management Act, 1999 — can invest in mutual funds in India. Mint spoke to Chandrika Kadur, a senior tax manager with Petrinovich Pugh & Co., a California-based firm, and Mo Ahmad, founder of Westmark Tax Group in Canada, to decode the taxation …

Income Tax: Do you need to disclose property sale in ITR even in case of no capital gain? Find out here
2 years, 2 months ago

Income Tax: Do you need to disclose property sale in ITR even in case of no capital gain? Find out here

Firstpost  

According to the provisions of the law, Section 54EC and Section 54EE are not mutually exclusive. Where capital gain arises from the transfer of a long-term capital asset, the taxpayer is able to claim deduction under Section 54EC While filing income tax returns, you have to disclose income from all sources irrespective of the amount, otherwise, at the time of …

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