Whether option trading is considered as speculation as per income tax act?
Whether option trading is considered as speculation as per income tax act?
Kanishka Jul. 28, 2023
No, option trading isn't a speculative activity.
In fact, it's a normal business activity as per the Income tax Act and deemed to be a non-speculative activity.
This means that any profits you gleaned from such trading would be taxed in the same manner as income or profits acquired from the carrying on of any other kind of business.
You should deduct business expenses like brokerage, service tax, STT tax, stamp duty, and regulatory charges, in addition to your purchase price.
