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Speculative Transaction:

A transaction where in a contract for purchase or sale of any commodity including stocks & shares is settled otherwise than by actual delivery or transfer of that commodity/stocks/shares is called a speculative transaction. Intraday trading in equity/stocks falls under this category.

In a speculative transaction there is no receiving or giving delivery of goods/shares/stocks. The contract is settled by paying out the differences in selling & purchase price which may be positive or negative.


CBDT by its notification on 25/01/2006 made it clear that derivatives transactions will be treated as non speculative transactions. Thus derivatives, future & options transactions though settled otherwise than actual delivery but are treated as non speculative transactions.

Quick Links:
How to calculate turnover of Derivatives and F&O transactions
IT Return & Tax Audit in case of F&O trade

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