Shaleen ShahGood News for traders who are trading in MCX Stock Exchange (MCX-SE) in forward contracts of currency. As per new notification of CBDT MCX-SE is now a recognised stock exchange for the purpose of section 43(5). This means that income from trading done in MCX-SE will now be treated a business income rather than speculation activity from 22.05.2009. After this the loss /profit from activities in MCX-SE can be set off with Normal business income and all other benefit/adjustment which is available to normal business income will now be available to transaction of currency contracts, executed through the MCX-SE. This change is applicable only for transaction done through MCX SE and not applicable to other exchanges.
Note: MCX-SE deals in currency contracts whereas MCX deals in commodity futures.
Full text of the notification is given below.
NOTIFICATION NO. 46/2009, DATED 22-5-2009
In exercise of the powers conferred by clause (ii) in the Explanation to clause (d) of the proviso to sub-section (5) of section 43 of the Income-tax Act, 1961 (43 of 1961), read with rule 6DDB of the Income-tax Rules, 1962, the Central Government hereby notifies MCX Stock Exchange Ltd. as a recognized stock exchange for the purpose of the said clause with effect from the date of publication of this notification in the Official Gazette.
2. MCX Stock Exchange Ltd. shall separately maintain data regarding all transactions registered in the system in which client codes have been allowed to be changed for periodical inspection by the Director-General of Income-tax (Investigation) having jurisdiction over such exchange and provide copies of the relevant information as and when required.
3. The Central Government may withdraw the recognition granted to MCX Stock Exchange Ltd. if any of the conditions specified in rule 6DDA of the Income-tax Rules, 1962, subject to which the recognition is granted, is violated.
4. This notification shall remain in force until the approval granted by the Securities and Exchange Board of India is withdrawn or expires, or this notification is rescinded by the Central Government as provided in sub-rule (5) of rule 6DDB of the Income-tax Rules, 1962.
[F. No. 142/25/2008-TPL]
[Source: www.simpletaxindia.org]
