Speculation loss rules: losses offset only against speculation income and carried forward subject to filing and classification conditions. Losses from speculation business may be set off only against speculation profits in the same assessment year and, if unabsorbed, carried forward solely against speculation business income for a limited period, subject to timely return filing and excluding losses from illegal speculation. Depreciation or capital expenditure carried forward for the speculative business must be set off first. Speculative transactions are defined by settlement without actual delivery, but exceptions include hedging, forwards, and trading in derivatives or commodity derivatives; a company's share trading may be deemed speculative only where it forms part of a broader business and not where trading in shares is the principal business.