What is speculative business

This query is : Resolved 
 


Querist : Anonymous (Querist) 06 August 2011

Dear Experts,
1-What is speculative business? and which types of business is covered under this?

2-If a person trading in shares market then which ITR form is applicable for his return filing?

Please give me ur valuable and kind reply on above points.

Thanking you,


Preety Parik (Expert) 06 August 2011

A business transaction (i.e purchase and sale) of goods is done where delivery of goods is not effected, it is known as speculative transaction.

2. Income from TRADING of Shares fall under the head Profit and Gains of Business or Profession. Accordingly choose ITR4 or ITR4s.


Querist : Anonymous (Querist) 06 August 2011

THEN WE CAN SAY THAT TRADING IN SHARE IS ALSO FALL UNDER SPECULATIVE BUSINESS?

PLEASE REPLY

THANKING YOU FOR UR KIND REPLY


Preety Parik (Expert) 06 August 2011

Only those share transactions whose delivery has not been effected will be speculative. If the delivery of shares is in form of physical share certificate or electronic mode in DMAT account, then these transactions are non speculative.


Querist : Anonymous (Querist) 24 August 2011

THANK YOU


Querist : Anonymous (Querist) 24 August 2011

THANK YOU



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