profit for the year 2020 rupees 40000 including rupees 2000 interest on trade investment the trading profit for the year 2020 will be considered as ___
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The trading profit for the year 2020 will be considered as rupees 40,000.
Explanation:
- This is because the interest on trade investments is already included in the yearly profit.
- Trading profit is the profit that an investor obtains from purchasing and selling short-term securities, or those that the investor possesses for less than one year.
- Trading profits can be significant if the investor knows what he is doing, but there is a good chance of risk involved.
- Governments often seek to promote long-term investment at the detriment of the short-term, and because of this, trading profit is commonly taxed at the (higher) income tax rate rather than the capital gains rate.
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