speculation profit or loss

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CA Vinay Dixit (Querist)
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10 September 2009 if Suppose X co. has traded in securities for which x co.paid short term capital gain.so,is it considered speculation profit or loss?consider x co.in a business other than share trading.

Zeeshan

Zeeshan (Expert)
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10 September 2009 speculation business: simply when any transaction settled without delievery is called speculation.

whether trading of securities will covered under the pgbp or capital gain is debatable issue depends upon the no. of transactions and frequency of transaction.

in your case if the securities are traded without delievery then it will be speculation profit/loss.

and if the securities are traded after taking delievery in d-mat or in pool of broker then it will either business income or capital gain. depends on the frequency of transactions and nature. (decided on the merits of the case)