in case of an trader in securities, transaction squared off on the same day should be treated as speculation transaction or trading transaction? overall activity includes trasactions squared off on the same day as well as holding the shares for number of days.
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trading or speculation transaction
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Intra day transaction are always speculative transactions.what is imporatant in regarding the transaction as "Speculative",is non-delivery setlement
Section 43(5) of the Act defines ‘speculative transaction’ as 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.
Hence intraday transaction which are not delivery based are regarded as 'speculative transaction'
if the actual delivery not made with in T+2 (Transaction day+2 days) then it becomes speculative transaction. So, the
squaire off can be made within two days from transaction day without delivery. It is always speculative.
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