Speculative transactions exclude genuine hedging, eligible exchange-traded derivatives, and qualifying commodity derivative trades under income-tax provisions.

Speculative transaction covers contracts for commodities, stocks or shares settled otherwise than through actual delivery or transfer. Exclusions apply to genuine hedging contracts involving actual-delivery business commitments or stock holdings, and to jobbing or arbitrage by forward-market or stock-exchange members in the ordinary course of business. Eligible exchange-traded derivative and commodity-derivative transactions are excluded, subject to the commodity transaction tax condition, which does not apply to agricultural commodity derivatives.

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