Commodity Transaction Tax

[Ashutosh Chhawchharia]

Whether Commodity Transaction to be treated as Speculative or Non Speculative Transaction?

AI Summary

Commodity Transactions: No Speculative Classification, 0.01% CTT on Non-Agri Futures; Agri Commodities Exempt A discussion forum addressed whether commodity transactions should be classified as speculative or non-speculative. A response highlighted that, according to a budget speech, there is no distinction between derivative trading in securities and commodities markets, except for the underlying asset. A Commodity Transaction Tax (CTT) is proposed for non-agricultural commodities futures contracts at a rate of 0.01%, similar to equity futures. These transactions will not be deemed speculative, and CTT can be deducted if the income is part of business income. Agricultural commodities are exempt from this tax.