12 November 2013
To know speculative business, we should first know what is speculative transaction.
As Per Sec 43 (5), Speculative Transaction means a transaction in which a contract of 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 scripts.
It is to be noted that profit or loss from derivative trading carried out through a recognized stock exchange shall not be treated as profit or loss from speculative business.
However, derivative trading in commodities shall continue to be treated as speculative transaction.
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