Comment on Classifying Your Market Activity

Ravi commented on 19 Dec 2018, 11:49 AM

hi sir,
i trade in usdinr F&O. it will be treated as speculative income or considered non-speculative business.
in this Chapter 3 Classifying Your Market Activity it is not clear. somewhere it is mentioned as speculative income and somewhere considered non-speculative business. i will quote what is written

1) ” As per section 43(5) of the Income Tax Act, 1961, profits earned by trading equity or stocks for intraday or non-delivery is categorized under speculative business income. Currency trading is also considered as speculative since there is no STT (unless you are using currency derivatives to hedge).

2) Key takeaways from this chapter
Trading F&O (Equity, currency, commodity) is considered non-speculative business
Trading intraday equity is considered speculative business
Equity holdings for more than 1 year is considered Long term capital gain (LTCG)

3) Non-speculative business income
Income from trading futures & options on recognized exchanges
(equity, commodity, & currency)
is categorized under non-speculative business income
as per section 43(5) of the Income Tax Act, 1961.

kindly clear currency trading is speculative or non speculative business income
also what is difference between speculative or non speculative business income

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