The Income-Tax Department has tightened its leash on commodities derivatives transactions put through recognised associations. The Central Board of Direct Taxes (CBDT) has asked commodity bourses to file with the Tax Department monthly reports of client code (unique customer ID) modifications. Reporting on client code modifications will help plug revenue leakages, say tax experts. This move is being largely driven by the Budget 2013-14 announcement to treat commodities derivatives transactions as non-speculative transactions for income tax purposes. All commodity derivative transactions put through recognised associations will be taxed under the business income head for income tax purposes.
Source : The Hindu Business Line
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