Speculative transaction

Under the Income-tax Act, a transaction periodically or ultimately settled otherwise than through actual delivery or transfer.

This one is not written up yet

The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.

Written up from the same chapter

Fair valueThe theoretical futures price — spot plus the cost of carrying the commodity to expiry — at which a buyer is indifferent between buying today and buying forward.

Where this is taught

Series IV · Chapter 9: Accounting and Taxation of IRDintroduced here
Series I · Chapter 9: Accounting and Taxation of ETCDintroduced here

Free preparation for NISM Series IV

Related terms

Suspicious Transaction ReportA report a SEBI intermediary must file with FIU-IND within 7 days of concluding that a transaction or connected series of transactions is suspicious — and must never disclose to the client.

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