What is the tax treatment of shares which are bought and sold but do not result in deliveries (as in case of margin product)?
Since these transactions do not result into delivery, they would be treated as speculative transaction. Therefore, profits and losses from such transactions would be considered as Profits and Gains from Speculation Business. However, where margin transactions are undertaken as a hedge to guard against losses in holdings, they would not be considered as speculative. Therefore, profits and losses from such transactions would be considered asnon-speculative business income / loss.
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