The existing provisions contained in clause (5) of section 43 define the term

speculative transaction. The proviso to the said clause (5) excludes certain category

of transactions as speculative transactions.

Finance Act, 2013 made a provision for levy of commodities transaction tax on

commodity derivatives in respect of commodities other than agricultural

commodities. As a consequence to the levy of commodities transaction

tax, clause (e) was inserted in the proviso to section 43(5) to provide that

eligible transaction in respect of trading in commodity derivatives carried

out in a recognised association shall not be considered as speculative

transaction. Vide Circular No. 3 dated 24-01-2014 explaining the provisions

of the Finance Act, 2013, it was clarified that the eligible transaction shall include

only those transactions in commodity derivatives which are liable to commodities

transaction tax.

Accordingly, clause (e) of the proviso to the said clause (5) has been amended so as to provide that eligible transaction in

respect of trading in commodity

derivatives carried out in a recognised association and chargeable to commodities transaction tax under Chapter VII of the

Finance Act, 2013 shall not be considered to be a speculative transaction.  

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