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Trading in commodity not more a speculative transaction

Finance bill 2013-14 has passed in Lok Sabha on Tuesday 30 April 2013 and there are some amendments in the rules of taxation. The new amendment rules are as under. In the new rule trading in commodity is not more a speculative transaction. New and old rules are as under.

Old Rule
Proviso to Section 43(5) provides a list of transactions which shall not be deemed to be 'speculative' transactions.

New rule

A new clause (e) is inserted in proviso to Section 43(5) wef assessment year 2014-15 to provide that trading in commodity derivatives carried out in a recognised association shall not be treated as 'speculative' transaction. For this purpose, an eligible transaction means:

(a)  Any transaction carried out electronically on screen-based system through a member registered for trading in commodity derivatives under the FCRA;

(b)  Transaction is supported by a time stamped note issued by such member;

(c)  The contract note should indicate unique client identity number, unique trade number and PAN.

Banking Calculators GST