Guys there is news that govt may impose 30% TDS on FNO in budget 2024-25 considering this in category of speculative trading (lottery) . You can check liveint and economic times articles on this.
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I don’t think the following text (from the linked template letter)
makes the point that you intend to.
If anything it makes a case for introducing even more stringent measures
around FnO to prevent such reckless behavior.
Any sources about this being anything beyond mere speculation?
BTW, this recent related thread discusses some of the nuances involved in this speculation and the misconceptions.
I am ok with they are hiking up the tax rate. But I am not ok with , they keeping trading under speculative, As profession, stock market will give a bad reputation. A skill full trader / analyst will be considered as a simple insurance agent. It will become a devastating future for a full time trader like me. A trader is an artist, leaner, smart and skillful engineer. Doctors and politicians are more speculative than traders imho.
…and so is a plumber or a carpenter
often who run their own businesses.
A key difference being that none of these other professions need to
put significant capital at risk without generating any net value.
IIUC, in the context finance/taxation,
“Speculative” is not a judgement of the individual/profession,
i.e. has no negative connotations along those lines.
Apparently, It is used to refer to activities
that involve putting one’s capital at risk
(eg. trading in derivatives, futures or hedging).
Earned income from a business activity in which the taxpayer has a significant risk of losing money is referred to as speculative income. Speculative income is distinct from conventional income in that it does not compensate for capital investments or grow net value. In other words, for income to be considered speculative, a taxpayer must be putting capital at risk.
Dnt wry its fake news
Hi , both livemint and economic Times related news on net. Officially unconfirmed but as per their sources. Fingers crossed nothing as such happens. Any such decision will be axe on foot for govt .
Looks at the trap for retail traders;
Expiry once a week converted to daily expiry because this day has max volumes
Decreasing lot size of make more affordable for retailers
Fat revenue being made by exchange and broker from FNO
If anything such happens hypothetically even ,
Kills the spirit of a man’s dreams
Yes hope so…
When you are a full time trader and your income is from trading… You are a gambler. That’s what speculative terms defies. No bank will give you loans , no govt entity will trust you going forward. The implications are scary.
I feel you went thru the flow of writing and mentioned Insurance agent….
If not, why on earth would a skill full trader cry to pay higher taxes when the skill ful trader is making astronomical profits.
If he is not making profits then the trader is just another lottery ticket buyer who is crying because govt is going to increase taxes and probability of he not winning remains the same
An insurance agent is as skilful if not more as he needs to convince his customer to buy a policy.
Someone is living in a dream world.
Full time trader should make good money to justify uncertainty and risk and should have good capital to do so…
Don’t take loans, taking loans to trade is a bad idea generally ( there can be exceptions i guess if no leverage is available and dd is very low.) If you dont have capital, then ideally you really need to earn it elsewhere.
Make lakhs and eventually crores a year and you don’t need to worry about what others think about your choice of profession.
I am trading stocks intraday which comes under speculative business. Makes no difference to me. Just some arbitrary tag with stricter rules that maybe can cause issues for loss making traders.
Too much complications by tax guys though, they want more tax so they will keep complicating. I think trading shouldn’t even be called as business, but anyway …
Spoken as an outsider basically with lots of assumptions.
We pay taxes even before making any money which is the major source of pain for active traders. And this tax was introduced in the name of giving exemption to investors. So we pay tax of other people who may well make many many times more than us. This will also impact market making so impact cost is higher too.
Profits of a lot of people with basic edges goes away due to such transaction taxes which we get reminded of everyday with login prompt.
Anyway, this is out of topic …
when FNO consider as business and professional income. you can set off your FNO loss from your business or profession income.
Check my previous msgs. I am ok with paying 30% taxes. In fact, most of the full time traders and up paying 30%+ tax slab. My notion was about sliding fno into speculative from business income. Guess you writes and reads on the flow
Why on earth would people not like more and more taxes you ask? right! 
I am of the opinion that this is overestimating the impact of retail.
Of-course liquidity is expected to reduce.
That is one of the planned and desired outcomes of this proposed measure (if it is implemented).
One of the justifications being given for the proposed measure is
currently there is excess liquidity - bordering maniacal volatility
especially in the form of naive retail individuals
driven by misinformation over social-media
which needs to be curbed.
Not true i think, haven’t done numbers but everyday volatility is pretty low in Nifty generally right now. No way this is maniacal. Participation has increased not volatility.
If anything, cash people are perhaps focusing more on smaller companies and that is where there is more movement and perhaps some sort of mania. People go wherever we have high past returns.
Not targeted at you, but I dunno why everyone just keeps talking about volatility as if its a bad thing, should prices move like debt products ? Extreme volatility can be problematic perhaps, but usually it happens when there is high uncertainty ( covid for ex) and so gets justified too. Else its just cyclical and normal part of market movement. Extremely low vol and high returns will make things look not risky leading to mistakes.
Guys relax. If and when it is implemented, we can talk about it. There is nothing that can be done now and who knows if people are just speculating these things.
What if there is nothing like this happening? All our energy we have put to assume different circumstances will go waste. Let’s wait and watch. 
Hi , Liquidity reduction is a very bad thing , in my opinion it cannot be a planned outcome but can be termed as collateral.
