Section 43(5) - Meaning of term "Speculative Transaction"

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....luding stocks and shares is periodically or ultimately settled otherwise than by actual delivery or transfer of the commodity or scrip except the following: * contract for raw materials in the course of manufacture to guard against loss through future price fluctuations * contract for stocks and shares entered by a dealer to guard for loss of holdings through future price fluctuations * cont....

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....ported by a duly stamped contract note issued by such stock broker or sub-broker or intermediary to its client * the contract note indicates the unique client identity number * the contract note indicates the PAN. * An eligible transaction carried out in respect of trading in derivatives in commodities in a recognised association shall not be deemed to be a speculative transaction provided c....

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....ction tax (CTT) * Commodities transaction tax (CTT) is chargeable on all commodities except agricultural commodities. * Therefore, forward contract in agricultural commodities will be regarded as speculation transaction. * Forward contract on commodities other than agricultural commodities will not be regarded as speculative transaction. * Forward contract on agricultural commodities will....