INCOME FROM BUSINESS - SPECULATION BUSINESS

By -

INCOME FROM BUSINESS - INDEX



SPECULATION BUSINESS [19]

A taxpayer carrying on a "speculation business", shall treat the same as a distinct and separate business from any other business carried on by the taxpayer. Incomes, gains or losses from a speculation business shall be kept separate from other business incomes. 

Incomes from business are to be presented and separately dealt with under the following sub-heads: 

1. Income from non-speculation business; and 

2. Income from speculation business. 

"Speculation business" means a business in which a contract for the purchase and sale of any commodity (including stocks and shares) is periodically or ultimately settled otherwise than by actual delivery or transfer of the commodity. 

However, the following businesses are not included in "speculation business" [19(2)] : 


1. A business in which a contract is entered into by a person to guard against loss through future price fluctuations in respect of other contracts entered into by him for actual delivery of goods. 

2. A business in which a contract in respect of stocks and shares is made by a dealer or investor to guard against loss in his holdings through price fluctuations. 

3. A business in which a contract is entered into by a member of a forward market or a stock exchange in any transaction of 'jobbing' or 'arbitrage' to guard against loss which may arise in the ordinary course of his business. 


"Jobbing" 

is the function of buying and selling financial securities on the stock market by dealer who acts as a principal in making a market In these securities. 


"Arbitrage" 

is the buying and selling of products, financial securities or foreign currencies between two or more markets in order to take profitable advantage of any differences in the price quoted in those markets. 


Comments

  1. Awais iqbal9 August 2019 at 04:12

    thanks very informative ... pakXtan.com

    ReplyDelete
  2. taxwelluk31 December 2019 at 00:40

    Very interesting blog Awesome post. Your article is really informative and helpful for me and other bloggers too.
    tax return for self employed in London

    ReplyDelete
  3. Aaaaccounting21 January 2020 at 22:25

    Thank's for sharing information and keep sharing the information.
    tax return for self employed in London,,

    ReplyDelete
  4. Alex Rogers25 February 2020 at 02:47

    accounting and bookkeeping services will help you maximize your return. By freeing up your valuable time you can concentrate on growing your business and marketing strategies. Nice Blog! Visit my site also!
    Bookkeeping Services Mississauga

    ReplyDelete
  5. Land Guider14 May 2020 at 03:43

    Thanks for sharing this info. Rudn Enclave is another best option.

    ReplyDelete
  6. RBS14 May 2020 at 03:52

    Thanks for informative. <Smart Villas is also best living place.

    ReplyDelete
  7. Aaaaccounting20 January 2021 at 01:35

    Thank you dear, I found your information really useful. I would like to say thanks once again for this information. keep posting all the new information.
    tax return for self-employment in barking

    ReplyDelete
  8. Unknown15 August 2021 at 04:13

    Much apricated. Keep sharing more posts like this . Expat tax professionals

    ReplyDelete
  9. Unknown15 August 2021 at 04:13

    Very informative. Really like your article. Need more on. expat cpa

    ReplyDelete
  10. Unknown15 August 2021 at 04:14

    A good way to say your words. Please also visit my site and let me know what do you think about my thoughts. Expat tax Services

    ReplyDelete
  11. Aaaaccounting30 November 2021 at 03:07

    I liked your blog a lot. You have shared very good information. Hope you keep posting like this. tax return for self employed in London Please join us to serve you.

    ReplyDelete
  12. Aaaaccounting20 July 2022 at 00:33

    Nice explanation about the new law. This is a really nice post and descriptive content. Thank You for sharing such a great post.
    tax plaining in barking

    ReplyDelete
  13. Business Times Hub31 August 2022 at 08:30

    I'm so happy I found this article! Your points are well presented, and the organisation of your writing made it easy to read. We value all of your excellent effort. If your are looking for Jobs in London according to your requirements than Download IYW app new and start looking for Opportunities  

    ReplyDelete
  14. Niel James31 March 2023 at 04:25

    Good to explain, Thanks for sharing valuable info. BSD Prime Services and other VAT consultants in Dubai can provide valuable support to businesses of all sizes and industries, helping them to achieve their financial goals and thrive in the challenging business environment of the UAE.

    ReplyDelete

Post a Comment

Live Stream

Legal Advise

Legal Advise

Taxation Training

Taxation Training

Popular posts from this blog

Procedure for registering mobile phones of persons returning to/visiting Pakistan

By -
Image
MOBILE TAX CALCULATOR NOTE: Please bear in mind that these figures are very close to,  but  NOT  the exact amount  you will be required to pay in tax. For simplicity's sake, the calculator also assumes that you are a tax non-filer. The exchange rate is assumed to be $1=Rs140. CLICK HERE   HOW TO REGISTER MOBILE PHONES BY FORIEGN TRAVELERS - DAWN NEWS The Federal Board of Revenue (FBR) has allowed sixty days period for international travelers to get duty-free registration of mobile    THE NEWS APPLICABLE DUTY/TAX STRUCTURE ON IMPORT OF MOBILE HANDSETS PCT (Pakistan Customs Tariff Code for Classification): 8517.1219  PCT Duty & Taxes 8517.1219 Customs/ Regulatory Duty  (i) Rs.250/set upto C&F Value of US $ 60;  (ii) @10% Adval of C&F value above US $ 60 & upto US $ 130;  (iii)@20% Adval of C&F value above US $ 130.  Sales Tax (S.No.2of the Ninth Schedule to the Sales Tax Act, 1990)  (i) Low priced : Rs.650/set
Read more

Taxation of Gratuity in Pakistan

By -
Image
Following are the procedures of taxation of gratuity laid down in the Income Tax Ordinance,  2001. We have summarized all the provisions of Income Tax Ordinance, 2001 relating to Gratuity in one place for the ease of our readers. Taxation of gratuity under the head Income From Business In the head “Income from Business” if contribution is made to an unapproved Gratuity than no deduction will be allowed for the same- Section 21(e) of the Income Tax Ordinance, 2001 Taxation of gratuity for Salaried Individuals Gratuity is part of salary as specified under section 12(2)(a) and Six Schedule Part III Clause 4 of the Income Tax Ordinance, 2001.  Exemption criteria under Second Schedule Part I Clause 13 Any Gratuity received on retirement of employee by employee himself or by his legal heirs after death of employee shall be exempt from levy of income tax subject to the following limits not exceeding:  1)        in the case of an employee of t
Read more

How to obtain exemptions under various provsions of Income Tax Ordinance, 2001 - Sample Letters included

By -
Image
1. INTRODUCTION 1.1 The exemptions provided under the Income Ordinance, 2001 are spread all over the said statute under various provisions and in order to have an in depth understanding of the same it is very important to analyse all the relevant provisions and to arrange them in a single meaningful way. 1.2 In this blog all efforts have been made to arrange the provisions regarding the exemptions under the Income Tax Ordinance in one place for an easy understanding of its valuable readers. 2. OVERVIEW OF EXEMPTIONS PROVIDED UNDER INCOME TAX ORDINANCE, 2001 2.1 The provisions of exemptions provided under the Income Tax Ordinance, 2001 can be divided into following three broad categories which will be discussed in detail later in this blog: Exemptions and Tax Concessions provided under Part VII of Chapter III of the Income Tax Ordinance, 2001; Exemptions under the ambit of Section 159 of the Income Tax Ordinance, 2001; and  Exemptions and Reduction in T
Read more