speculative losses or business loss

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N.RAJESH KUMAR (Querist)

26 November 2008 losses from commodity trading through recongised stock exchange, whether the loss is speculative loss or business loss

N.RAJESH KUMAR

N.RAJESH KUMAR (Querist)

26 November 2008 section 43(5) Speculative transactions means a transaction in which contract for the purchase or sale of any commodity, including stocks & shares, is periodically or ulitmately settled otherwise than by the actual delivery or transfer of the commodity or scrips.
provided that for the purposes of this clause:-
a) a contract in respect of raw materials or merchansied entered into by aperson in the course of his Mfg, or merchanting businees to gruad against loss through future prices fluctations in respect of contracts for actutal delivery of goods Mfg ured by him or sold

Jitender

Jitender (Expert)

26 November 2008 if it is delivery based then -business loss otherwise speculation loss.

Vijay

Vijay (Expert)

27 November 2008 Yes ..it is speculative ..cos actual delivery does not happen of commodities.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)

15 December 2008 Commodity transactions are done through Commodity Exchanges and not through Stock Exchanges. The treatment of Profit and Loss under the Income Tax may be construed in view of Section 43(5) which is as per under:

Delivery based: Non-speculative
Derivative trades: Speculative but for
hedging trades it is
non-speculative.

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