BTST is considered as Speculative or not while calculating turnover for taxation?

While calculating my turnover, I am confused if I should consider my trades done on BTST as speculative (as I haven’t taken delivery) or should consider it as delivery because it is not an intraday trade?


It should be considered as a short term trade.

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This is a debatable topic, since you have paid STT as delivery trade, since your contract notes say that you have bought and kept the trade overnight, some people will debate that it has to be delivery trade.

The other bunch will say, since the stocks never came to your demat account (i.e you never took delivery of the trade), it has to be speculative.

The difference in turnover here would be, if it is delivery the entire sale value is considered as turnover and if it is speculative then the the gross profit/loss is considered as turnover. The requirement of turnover is to only determine if an audit is required or not (if more than 1 crore or if profit is less than 8% of turnover, then audit is required).

Check this link: , it says that if delivery is not taken then it is speculative.

But personally if you are a very active trader, i’d still suggest taking the entire sell value of BTST trades for turnover, IT department will never have a problem if you declare more turnover, it will have if you declare less… :slight_smile:


Very good information. Good do know.

Good piece of information, thanks.