F&O Transaction

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SAMEER UPADHYAY (Querist)
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09 July 2009 Please tell me the treatment of F&O trnsactions.Whether it is a speculation business or an ordinary one for carry forward of business losses.Kindly specify notification no (if any) in this regard.

NITIN

NITIN (Expert)
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09 July 2009 As per recent circular it is treated as speculation transaction

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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09 July 2009 F&o transactions are not 'Speculative'. as per Sec.43(5)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 July 2009 More specifically proviso (d) to section 43(5) of the IT Act,1961.

Dealings in derivatives is a kind of transaction which does not involve any purchase and sale of securities and,therefore, loss/profit on a/c of F&O transactions cannot be treated as speculative.

Citation:-RBK Securities(p) Ltd Vs. ITO 13 DTR 255(Mum-Tri).

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