Most popularly, speculative investments are seen in the markets concerned with stocks, real estate, fine art, antiques, commodities and collectibles.

The definition of speculative is based off of thoughts not evidence. An example of something speculative is a theory based on emotions that a certain stock is going to rise. adjective. 2.

Speculate is to buy or sell land or other investments that are high risk, with the goal to make a very big profit. An example of speculate is to buy land way out in the country to build housing because you hear that a new manufacturing plant might be built close buy.

Speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable in the near future. Speculators are particularly common in the markets for stocks, bonds, commodity futures, currencies, fine art, collectibles, real estate, and derivatives.

Intra-day trading is the trading of shares within the same day. Generally, the delivery is not taken in case of intra-day trading. Thus, they are called speculative transactions. Therefore, based on the definition it can be inferred that intra-day trading income is speculative income.

Non-speculative business income: Income from trading Futures & Options (both intraday and carry forward) on is considered as non-speculative business. F&O is also considered as non-speculative as these instruments are used for hedging and also for taking/giving delivery of underlying contract.

Stock trading is short-term speculating because the trader is making an educated guess about something that’s not readily measured: figuring out which way the market will move.

A business is categorized as speculative or non-speculative. 1. Speculative business income: Income from intraday equity trading is considered as speculative. 2. Non-speculative business income: Income from trading Futures & Options (both intraday and carry forward) on is considered as non-speculative business.

A speculative investment is one with a high degree of risk where the focus of the purchaser is on price fluctuations. The investor buys the tradable good (financial instrument) in an attempt to profit from market value changes. We call somebody who makes a speculative investment a speculator.

An arbitrageur is a type of investor who attempts to profit from market inefficiencies. Arbitrageurs exploit price inefficiencies by making simultaneous trades that offset each other to capture risk-free profits.

Hence BTST and STBT can be classified as non-speculative business income. We come to the all-important subject of trading in F&O. Hence it has been specified that income from F&O shall be classified as non-speculative business income.

One can recognize a speculative business to be treated as a distinct business and to be separate from any other business carried on by the same person if the taxpayer is carrying on many businesses along with the respective speculative business.

Speculative Transaction means a transaction in which a contract of purchase or sale of any commodity including stocks and shares, is periodically or ultemately settled otherwise than by the actual delivery or transfer of the commodity or scriptts.

(1) Any loss, computed in respect of a speculation business carried on by the assessee, shall not be set off except against profits and gains, if any, of another speculation business.

This becomes necessary because section 73 provides that losses in speculation business unlike other business, cannot be set-off against the profits of any business other than a speculation business.