05 July 2012
Some examples of Speculative Business are as follows:- betting on a horse race, investing in stocks/bonds and real estate. Derivatives etc.
05 July 2012
speculative transaction is defined as per IT act
As Per Sec 43 (5), Speculative Transaction means a transaction in which a contract of purchase or sale of any commodity including stocks and shares, is periodically or ultemately settled otherwise than by the actual delivery or transfer of the commodity or scriptts.
It is to be noted that profit or loss from derivative trading carried out through a recognized stock exchange shall not be treated as profit or loss from speculative business. However, derivative trading in commedities shall continue to be treated as speculative transaction therefore say if your doing intraday trading in stock market it is considered as speculative transaction as there is no delivery
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