Derivative trading

well for a very small number of transactions, you may account for the same in capital gains/other income. 

Derivatives will always be considered as PGBP Income if it is carried out on recognised stock Exchange

Dear Piyush,

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.

help yourself with this https://www.livemint.com/Opinion/xd9723x6oEXvV0X1eu5MOO/Derivatives-are-complex-and-so-is-their-tax-treatment.H T M L

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