Nikhil Kaushik (Co-founder @ Graviky) 09 December 2015
There is no such condition. Whether it is a business or not will always be subject to the facts of each case. Further, even if I take your statement as half correct, the other half will still be wrong as even if you consider derivative trades as business, it is immaterial whether it is traded on a recognized stock exchange or not.
Piyush Singhal (CA STUDENT) 10 December 2015
As per the defination of speculative transaction under Income Tax Act,1961, a transaction in derivatives will not de deemed as speculative transaction if it is carried out at recognised stock exchange.
If the person dealing in such transaction is a businessman then it will be taxable under the head PGBP otherwise income under the head Other Sources