https://www.taxtmi.com/article/detailed?id=334 An explanation to the income tax deeming provision treats the business of purchase and sale of shares by certain companies as speculative business, converting trading losses into speculation losses and restricting their set off. While statutory exceptions shelter bona fide hedging and recognised exchange trades, many instruments and acquisition modes (debentures, mutual fund units, allotments, warrants, cooperative shares, conversions, redemption/forfeiture) fall outside the ordinary notion of purchase and sale of shares and should not attract the fiction. A High Court held stock valuation declines may be deemed speculative loss; the author urges purposive, limited application and recommends appellate review. en-us Sat, 11 Apr 2009 00:00:00 +0530 Sat, 11 Apr 2009 22:00:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=334 An explanation to the income tax deeming provision treats the business of purchase and sale of shares by certain companies as speculative business, converting trading losses into speculation losses and restricting their set off. While statutory exceptions shelter bona fide hedging and recognised exchange trades, many instruments and acquisition modes (debentures, mutual fund units, allotments, warrants, cooperative shares, conversions, redemption/forfeiture) fall outside the ordinary notion of purchase and sale of shares and should not attract the fiction. A High Court held stock valuation declines may be deemed speculative loss; the author urges purposive, limited application and recommends appellate review. Articles Income Tax Sat, 11 Apr 2009 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=334