Tax Glossary Definition
Transactions Without Actual Delivery: A speculative business involves trading activities where the contract is settled without actual delivery of goods or securities — for example, intraday stock trading. Losses from speculative transactions can only be adjusted against profits from similar speculative activities and cannot be set off against other income heads.
Example: An intraday trading loss of ₹50,000 may only be offset against speculative profits earned during the same or subsequent years.
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