Sarkar ka naya 30% F&O tax aur pre-deducted TDS pe aapka kya kehna hai? Choose wisely, or the government might impose a tax on your choice(vote) too!

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30% Tax on F&O (& treating derivatives like lottery!!)

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Last Comment 2024-07-24

The Economic Times Offers

Pratikkkkkk

2024-06-21

Budget may impose higher tax on F&O income by treating derivatives like lottery: Report

Synopsis

The government is reportedly planning to impose a higher income tax on F&O, treating it similarly to income from lotteries or cryptocurrencies in the upcoming Budget. This move aims to address concerns about retail traders losing substantial amounts in the derivatives market. Proposed changes include reclassifying F&O transactions from 'business income' to 'speculative income' and potentially introducing a TDS.
Worried about hyperactive retail traders losing tons of money in the derivatives market, the government is said to be considering a proposal to impose higher income tax on futures and options (F&O) by treating it akin to income from lottery or cryptocurrencies in the Union Budget , according to a report.

The government is considering adjustments to the tax treatment of F&O transactions by reclassifying it from 'business income' to 'speculative income' and even imposing a TDS, Financial Express reported.
Being planned to curb retail participation in the derivatives market, the change will mean that F&O income may start getting the same tax treatment as lotteries and cryptocurrencies.

Currently, income from F&O transactions is treated as business income and taxed according to income slabs of 5%, 20%, and 30%. The existing classification also allows gains from F&O to be offset against losses from other business activities.

Applying TDS to F&O would allow the government to track investors in the market more effectively and also deter frequent trading, according to the report.

There are also speculations in the market that the Budget may impose a 30% tax, similar to crypto investments, on F&O income.

This regulatory scrutiny arises amidst concerns from various stakeholders, including the government, regulators, exchanges, and fund houses, over the sharp rise in retail trading volumes within the derivatives market.

About a month ago, Finance Minister Nirmala Sitharaman commented on the issue, signaling potential policy changes. "Any unchecked explosion in retail trading in F&O can create future challenges not just for the markets, but for investor sentiment and also for household finances," Sitharaman had stated.

Earlier this week, RBI Governor Shaktikanta Das said volumes in the derivatives market are perhaps larger than the nominal GDP of India.

"The early warning group is monitoring that. Sebi and the Reserve Bank, together we are monitoring that...Sebi has taken a few measures and they are examining it and I think they will deal with it," Das said at ET Now Leadership Dialogues on Tuesday.

Out of the 108 billion options contracts traded worldwide last year, 78% were from Dalal Street where retailers make up 35% of derivative trading.

The derivatives turnover on the NSE has surged 30 times from Rs 247.5 lakh crore in March 2020 to Rs 7,218 lakh crore in March 2024.

In the meantime, Sebi is said to be considering a series of tweaks to its derivative trading rules to address risks arising from an explosive growth in options trading.

The new rules could include higher margins for options contracts and more detailed disclosures and are being considered after a series of meetings with exchanges, brokers, and fund houses over the past four monthsarket down by 370+ points , according to a report by Reuters .

Edit - Immediate impact, Market down by 370+ points as of now

Disclaimer

We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.

Top Comments

https://www.desidime.com/comments/permalink/10143802

DEEPANGEORGE

2024-06-21

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If this happens THEN GOOD MOVE BY GOVT. (i highly doubt it will happen)

I DOUBT NIRM*L will do this because they want STOCK MARKET TO BE SHOWN AS THEIR PORTFOLIO OF SUCCESS LOL (fake success fake growth loool gimmick by this ruling party) since if this is implemented stock market may crash

so madam Nirm*L wont do anything that bothers stock market easily (as she loves to show stock market fake growth as her own growth lool she dont know how to improve infrastructure with govt money but knows how to manipulate stock maket to be show as good lol)

THIS MIGHT BE A RUMOR ON STREETS by operators

hurray hurray

good game by operators

https://www.desidime.com/comments/permalink/10143802

DEEPANGEORGE

2024-06-21

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If this happens THEN GOOD MOVE BY GOVT. (i highly doubt it will happen)

THIS MIGHT BE A RUMOR ON STREETS by operators

hurray hurray

good game by operators

https://www.desidime.com/comments/permalink/10143844

Pratikkkkkk

2024-06-21

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We pay taxes like we're living in Europe but get services like we're in 'Uganda' believe it!

https://www.desidime.com/comments/permalink/10145134

MyAmit

2024-06-22

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Modi Govt is becoming more Shitty day by day for common men.

The Tax of MP, MLA is paid by Govt itself.

They also have More ways to earn in form of Black Money.

So They don't bother for Common men.

Impose more Taxes to earn and form govt by bribing people in form of free things.

This is Modi Govt.

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https://www.desidime.com/comments/permalink/10143802

DEEPANGEORGE

2024-06-21

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If this happens THEN GOOD MOVE BY GOVT. (i highly doubt it will happen)

THIS MIGHT BE A RUMOR ON STREETS by operators

hurray hurray

good game by operators

https://www.desidime.com/comments/permalink/10143844

Pratikkkkkk

2024-06-21

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We pay taxes like we're living in Europe but get services like we're in 'Uganda' believe it!

View 3 more replies

https://www.desidime.com/comments/permalink/10143910

GreyHenna

2024-06-21

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Isn't it possible to barr retail people from trading fno?

https://www.desidime.com/comments/permalink/10143943

Pratikkkkkk

2024-06-21

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Nope .... That would be a disaster pensive Retail Traders contribute About 35% to the F&O market so gov. Would end up loosing that much .. And its huge

View 3 more replies

https://www.desidime.com/comments/permalink/10143949

KrishabhAgrawal

2024-06-21

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Ek option aur daalo...mudiji ne kiya hai to soch ke kiya hoga.

P.S. It's just speculation. They can't charge 30% in F&O.

https://www.desidime.com/comments/permalink/10143981

homedimer

2024-06-21

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😗30% above 15 lakh hua tab hoga na?? 15 lakh fno me bante kaha h

https://www.desidime.com/comments/permalink/10144133

bikidas2060

2024-06-21

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Crores ban jate hain. 😒

View 3 more replies

https://www.desidime.com/comments/permalink/10144012

arko1983650

2024-06-21

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This move will be good as it will stop all foolish/uneducated about F&O to leave this segment and go for cash segment which is slightly less risky.
Bitcoin faced 30% so lot of people left it including me.
I am not a supporter of any political party , I am just saying it because 90 % traders face loss in F&O including me.

https://www.desidime.com/comments/permalink/10144222

Jarvis.-.

2024-06-21

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Not really 90% make loss so they still don't have to pay any tax 30% or 10% doesn't matter, people left bitcoin trading cz u can't setoff loss there so loss is urs to bear but govt will take cut on profit it is the most hilarious rule till date

View 4 more replies

https://www.desidime.com/comments/permalink/10144040

LordGane

2024-06-21

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No one knows shit about the budget. This govt is good in maintaining secrecy. Media just want attention. Wait till July. But I believe f&o is a dangerous game for retail investors and should be taxed high.

https://www.desidime.com/comments/permalink/10144137

bikidas2060

2024-06-21

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Immediate impact, Market down by 370+ points as of now.

On budget day, we might see Nimee candle. Btw, It's good that market is correcting a bit. It should. Then bull run will safely continue.

https://www.desidime.com/comments/permalink/10144311

DEEPANGEORGE

2024-06-21

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Ya bull run can't be stopped as there is no strong negative things to factor in , budget and things are just small sand dust in an ocean of things:)

View 7 more replies

https://www.desidime.com/comments/permalink/10144727

Simbha3

2024-06-21

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govt ko lagta he yea log baithe baithe kaise paisa bana rahe hey. hafta toh dena padega

https://www.desidime.com/comments/permalink/10144826

androgame

2024-06-21

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I completely support the govt, bas market girwadein kisi tarah.

View 4 more replies

https://www.desidime.com/comments/permalink/10144943

BELEIVE_KARMA

2024-06-21

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hum log jald hi mughal kaal ma aa jayenga jha mandir par bhi tax dena padega , or marna ka baad humari haddiyo ko sell karka tax lenga , medium family ko sadak par la denga

https://www.desidime.com/comments/permalink/10144944

BELEIVE_KARMA

2024-06-21

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abhi election ka jhatka lga lekin akal nhi aayi

https://www.desidime.com/comments/permalink/10145134

MyAmit

2024-06-22

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https://www.desidime.com/comments/permalink/10165550

Raj_M40

2024-07-01

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But what to do, what is the solution? Despite our khata-khat and taka-tak Modi came to power.

The whole system is manipulated and bought. BJP will keep winning till there is EVM.

View 2 more replies

https://www.desidime.com/comments/permalink/10146342

OLDBOY

2024-06-22

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Option is like a lottery even then taking 30% cut from profit is insane but they already had done this in crypto market.

https://www.desidime.com/comments/permalink/10146379

Pratikkkkkk

2024-06-22

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Cryptocurrency was based on blockchain technology, which many criminals used for illegal activities. Consequently, the Indian government decided to ban it entirely in India. While this reasoning might be understandable, what about the Indian derivatives market? It's not based on blockchain and has been completely transparent from day one. If the government's aim is to protect new investors from incurring losses, why don't they regulate the market more effectively? They should take swift action against many Instagram and YouTube influencers who promote schemes like 'zero to hero' and sell courses or give market tips illegally on WhatsApp and Telegram. These activities give newbies unrealistic hopes by hiding the reality of the market. I'm not sure if the 30% pre-deducted TDS is real or not, but if it is, it might encourage people to engage in illegal activities to avoid paying taxes, which would ultimately harm the government. This could also lead to more millionaires leaving the country for places like the UAE.

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https://www.desidime.com/comments/permalink/10147239

quantum

2024-06-23

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Congratulations on being Deal Lieutenant @Pratikkkkkk 🎈🎉👏🏼⭐🫡

https://www.desidime.com/comments/permalink/10147304

Pratikkkkkk

2024-06-23

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Yes, I just saw this, and I'm feeling so excited! fire fire ♥️♥️

https://www.desidime.com/comments/permalink/10147577

Musky

2024-06-23

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govt hai. 30% TDS lagane chali hai... fno pe..

This is all speculation ... capital gains pe 30% tax lagaye ... na utar de ambani ji Modi ji ko Kursi se neeche ... 😁

Sarkaar ko ye nhi hai kic logo ko knowledge de ... trading ki ... bas tax badha do... kyonki unko sirf paisa dikh rha hai.

Ye sab burden middle and lower class families pa hi aate hai ... big players toh already 44% tax pay krte hai.

man karta hai... tai ko jhapad maaro and is planet se bahar bhej doon itne sade ideas dene ke lie. And penalty laga doon 10000 cr ki.

https://www.desidime.com/comments/permalink/10147599

Pratikkkkkk

2024-06-23

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Big players don't care since they already have great contacts with tax haven countries! It's just us who suffer from the burden of stringent tax regulations and financial scrutiny. While they enjoy the benefits of offshore accounts and minimal taxes, we are left grappling with heavy tax rates and limited financial relief. The disparity is glaring, and it only serves to widen the gap between the wealthy elite and the average taxpayer 💔

View 1 more reply

https://www.desidime.com/comments/permalink/10148995

Black_Panther1

2024-06-24

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Congratulations bro on being Deal Lieutenant

https://www.desidime.com/comments/permalink/10149858

bobby_123

2024-06-24

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The government of India is considering a proposal to impose higher income tax on the F&O segment in the upcoming union budget. This is because the government is quite worried about retail traders losing tons of money in the derivatives market.

Let's see what the deal is...

https://www.desidime.com/comments/permalink/10149859

bobby_123

2024-06-24

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@homedimer @bikidas2060

https://www.desidime.com/comments/permalink/10150010

bikidas2060

2024-06-24

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Not yet.

https://www.desidime.com/comments/permalink/10149865

legend101

2024-06-24

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Losing money pe 30% rebate de fir, jab kamaye tab bhi tum hi lelo to kya fayda worry ka

https://www.desidime.com/comments/permalink/10149902

guest_999

2024-06-24

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Crypto tax is already there, no setoff for losses but tax on profits. This is exactly how gambling/lottery tax work too. If you win then pay extra for getting lucky, if you lose then blame your luck & not get any relief. smile

https://www.desidime.com/comments/permalink/10150064

DEEPANGEORGE

2024-06-24

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mhm this is operator game:P everyone is falling for it xD lets see how it goes:P xD

https://www.desidime.com/comments/permalink/10150238

homedimer

2024-06-24

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Yes but half true tax will increase on f&o but not sure about flat 30% or less

https://www.desidime.com/comments/permalink/10150239

homedimer

2024-06-24

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I think tax slab will be same only .. they will just add 10% tds

https://www.desidime.com/comments/permalink/10150243

homedimer

2024-06-24

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@androgame bro if f&o comes under speculative income no slab will be applicable right ?

https://www.desidime.com/comments/permalink/10150262

androgame

2024-06-24

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Even if they make it speculative, tax slab would still be applicable bro, just setoff won't be possible with other incomes. You would still be able to claim all expenses and everything remains same. Even presumptive taxation would be available.

If they treat it as lottery then tax slab won't be applicable, this is not likely though.

I feel they want to remove option of presumptive tax for futures and options, so they might specifically exclude it somewhere.

https://www.desidime.com/comments/permalink/10150296

Pratikkkkkk

2024-06-24

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30% TAX ON F&O (& treating derivatives like lottery!!)

Please Visit

https://ddime.i...Tp

Merge @admin @ankur2.0

https://www.desidime.com/comments/permalink/10150300

Pratikkkkkk

2024-06-24

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+ if this is true .. then this Gov. Could have a free fall .. bcoz people would go crazy!!

https://www.desidime.com/comments/permalink/10150450

homedimer

2024-06-24

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😂 Traders ki sunwai nhi h ..90% toh loss wale hi h

https://www.desidime.com/comments/permalink/10150926

bobby_123

2024-06-25

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Risk is ours, Money is ours , time is ours, loss is ours..

but profit is shared 😢

https://www.desidime.com/comments/permalink/10150933

quantum

2024-06-25

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skill? or genral gamble!!

View 4 more replies

https://www.desidime.com/comments/permalink/10151447

bobby_123

2024-06-25

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@quantum bhai maza le rhe hai

https://www.desidime.com/comments/permalink/10155998

sab21

2024-06-27

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If I make loss in FnO, will the govt share 30% loss as well by not being a sleeping partner. innocent

https://www.desidime.com/comments/permalink/10162701

Pratikkkkkk

2024-06-30

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Tax 100% kaar dena chahiye, ajkal itne mehengai me 30% se kya hota hai pensive

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https://www.desidime.com/comments/permalink/10161273

Dastro

2024-06-30

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The Old mindset policymaker are ridiculuous.

They have no idea how to tackle things.

They do not want to work and put effort to innovate to bring soultion to any problem.

They have only one solution increase Tax(for finanace sector issues), increase punishment(for crime)

There are so many good people are ready to give there free service for innovative solution for n number of issues but the system is so flawed that no one cares.