28 August 2008
though its look illogical that F&O trade is treated under normal business where as the day trading as speculative trade but this is true.
Now what is meaning of speculative business ,we can say where we trade without a motive of taking deliveries or giving deliveries it will be treated as speculation so by these definition both intra day trade and F& O are covered under speculation Income
But CBDT has through its notification notifies that F&O income will be treated as normal business Income and nothing is said about other speculative activities so they remain with the earlier status and will be covered under speculation income
This has been done to promote F&O in equities.One thing you should also remember that commodity Future are also covered under speculation as the said notification only cover F& o of equities
CAclubindia
