income tax on share trading

As per Section 43(5) of the Income-Tax Act, 1961, speculative transaction means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips.

It may also be noted that a speculative business loss which cannot be set off against income from speculative business in the same year can be carried forward and set off against speculative business income within a period of four assessment years immediately succeeding the assessment year in which the speculative loss was first computed.