explain speculative business income...two page ka chaiye pls
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Answer:
Income from intra-day trading is considered as speculative income and taxed as per standard slab. ... It states that a transaction of purchase or sale of a commodity including stocks and shares settled otherwise than by actual delivery or transfer of the commodity or scrip is a speculative transaction
The definition of Speculative Transactions specifically excludes the Intraday Trading of Commodity and Currency and it is thus a Non-Speculative Income. Additionally, if the trader has significant trading activity in delivery-based equity trading and mutual funds, it is a Non-Speculative Business Income.
As per Section 43(5) of the Income Tax Act, 1961, intra-day trading shall be considered as speculation business transactions and the income therefrom would be either speculation gains or speculation losses. Income from speculation gains is taxed at the normal rates.
Typically FNO trades are treated as non-speculative in nature with stock intraday trading falling under speculative income. Thus both of these are treated as separate incomes with separate opportunity to claim expenses on them.