About speculation

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rama devi (Querist)

23 September 2016 sir , i have short term capital loss on sale of shares , and i transfered shares , so is this speculation loss or not. and provide differrent between speculative bussiness and normal bussiness relating to shares

CA Sumiit B Nagpal

CA Sumiit B Nagpal (Expert)

23 September 2016 There are two types of trading /profit/loss- One is delivery based and other is speculation. The best example of speculation is intraday trading. The delivery based trading /profit/loss is a normal business gain/loss. If you have suffered loss either it can be a business loss or short term capital gain loss(STCL). If you are regularly trading for a motive for earning profit it is your business loss however id you have held the shares for investment earlier and now you have sold it it is a capital loss/ Assuming that the transaction in shares was of such shares that are listed on any recognised stock exchange and you have sold the same within a year only then it is STCL which you can carry forward to 8 years. Please share the complete details to provide the accurate treatment.

Amol S Joglekar

Amol S Joglekar (Expert)

23 September 2016 loss on transfer of shares ....through D-mat..... short term or long term loss (As per period of holding)
speculative loss is where delivery of shares is not taken....

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