Speculative Business Understanding - Confirmation required

Statement:
I am trading futures and options on a stock Index in an exchange the US.


What I have understood so far about the above method of trading.
1. Determination of Speculative:
- If I was doing this in India (a "recognised exchange"), it would NOT be speculative business.

future and options are never been part of capital gains, its always speculation or business income/loss depending on the principal business of the taxpayer. 

- The only thing that makes it speculative is that the exchange is not recognised (US based).


2. Determination of Basis of Turnover:
- The BASIS of TURNOVER for my trading will be SQUARED UP transaction's profit/loss - as opposed to the sale price, etc of normal transactions.
- The absolute value (without signs) of the individual squared up transactions P/L will be added to determine TURNOVER.

if the taxpayer's principal business is trading in shares then the turnover means premiums or amount paid / received in gross, 

if other than above , then net realization from above trades.

3. When do I need to be audited?
- If this Turnover of Speculative Business exceeds 60 lakhs (40 earlier), then my return needs to be audited, before being filed.

same as if turnover of 2 exceeds 60L then only audit required. 
=====> In "Profits and gains of business or profession" What makes my trading a Business vs. a profession? Because the profession limit is lower....

Look at your balance sheet assets for simple understanding ..............

.........if the shares held in DP are accounted as "stock in trade" and closing value is as on 31st march .......... as per market value, then its business and profession 

.........if the shares held in DP are accounted as "capital investment" and valuations are as per cost value, then its investment and are subject to capital gains ( STCG/LTCG)

4. What's the tax Rate?
- Profits from a speculative business are taxed at a flat 30% rate.

No, its to be added to your taxable income and would be taxed as per slab. 

- Losses can be carried forward for a max of 4 consecutive years.

No, speculative losses can not be carried forward for investors, but traders can carry forward as business loss. 

Some of what I referred to:
Overall Q&A:
/forum/future-and-options-trades-20387.asp

Covered exchanges:
/forum/commodity-futures-taxability-68908.asp

Basis of turnover for speculative business:
/experts/turnover-caculation-422205.asp#219203
/forum/what-is-speculation-buisness-12535.asp
/experts/turnover-of-intraday--445820.asp