speculative losses or business loss
This query is : Resolved
26 November 2008
losses from commodity trading through recongised stock exchange, whether the loss is speculative loss or business loss
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
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
26 November 2008
if it is delivery based then -business loss otherwise speculation loss.
27 November 2008
Yes ..it is speculative ..cos actual delivery does not happen of commodities.
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.
Delivery based: Non-speculative
Derivative trades: Speculative but for
hedging trades it is
non-speculative.
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