SPECULATIVE BUSINESS OR NOT
This query is : Resolved
02 January 2010
ACCORDING TO INCOME TAX ACT, SPECULATIVE BUSINESS IS A BUSINESS IN WHICH DELIVERY IS NOT AFFECTED. BUT IN ALL COMPANIES IN NSE AND BSE Z GROUP COMPANIES TRANSACTION CAN BE ONLY BY GROSSING i.e. WHEN A PERSON PURCHASES AND SELLS SHARES IN NSE HE HAS TO FIRST DELIVER SHARES AND THEN RECEIVE THEM UNLIKE IN BSE EXCEPT Z GROUP COMPANIES WHERE NETTING METHOD IS ALLOWED. SO DOES AN INTRADAY IN NSE AMOUNT TO SPECULATIVE BUSINESS?
02 January 2010
HI
Let me first confirm you with the definition of speculative transaction
"When the purpose of a transaction entered between the parties is settled by price differences of two different TIMES without effecting DELIVERY of the GOODS TRANSACTED; then such DEALS are known as SPECULATION. "
Conceptually you are right, but does any of of intraday trading ( whether A script, B Script, or Z Script) enters the books of DMAT. If not, then you are covered by speculative transactions...
Let me first confirm you with the definition of speculative transaction
"When the purpose of a transaction entered between the parties is settled by price differences of two different TIMES without effecting DELIVERY of the GOODS TRANSACTED; then such DEALS are known as SPECULATION. "
Conceptually you are right, but does any of of intraday trading ( whether A script, B Script, or Z Script) enters the books of DMAT. If not, then you are covered by speculative transactions...
02 January 2010
Thank You
But the deals can be settled through the broker's account also like he giving and taking the delivery on my behalf, so it does not affect my demat account.
Then how should i treat the income?
But the deals can be settled through the broker's account also like he giving and taking the delivery on my behalf, so it does not affect my demat account.
Then how should i treat the income?
02 January 2010
speculative...
05 January 2010
it will be speculative business.
ramesh
ramesh
05 January 2010
yes speculative
03 October 2021
Transactions in 'Z group' companies do not qualify for intraday transactions, hence are not speculative.
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