Investing
Speculative Income — Meaning
Income from transactions settled without delivery — mainly intraday equity trading.
What is Speculative Income?
A speculative transaction is one settled otherwise than by actual delivery, the classic example being intraday share trading. Under Section 43(5), its profit is speculative business income taxed at slab rates. Speculative losses can be set off only against speculative income and carried forward for four years. Exchange-traded futures and options are specifically excluded and treated as non-speculative business income.
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Related terms
More Investing terms
RSU (Restricted Stock Unit)
Employer shares granted on a vesting schedule, taxed as salary on vesting and as capital gains on sale.
F&O Turnover
For tax audit purposes, the total of absolute profits and losses on each futures and options trade.
VDA (Virtual Digital Asset)
Crypto, NFTs and similar assets, taxed at a flat 30% with no loss set-off and 1% TDS.
STT (Securities Transaction Tax)
A tax on buying and selling listed securities on stock exchanges, a condition for concessional capital gains rates.
