ICAI has recently issued new guidance note, & as per that the premium received on sale of option is not to be added again in turnover if it is already included in Net Profit calculation. Thus, in our example, the turnover will be Absolute value of Net gain or loss, which is column H. Hence turnover for option seller will be Rs. 3,000 (09:11 to 13:10) & turnover for option buyer will be Rs. 3,000 (13:11 to 18:05).
Thanks a lot for giving this update on the video. I was about to comment and request to please give an update on the new guidance. I have another question. What is the effective date for this clarification. can we revise our prior year it return with the new turnover values ?
Ma'am, there has been guidance note issued by ICAI on this section recently say a last week. As per which Turn Over defination has been changed, so request to revise/make a new video for better/correct understanding 🙏
Why not everyone tell about this If your total income including STCG after applicable tax deductions is below Rs 2.5 Lakh, then your total tax liability is nil and also no liability will arise us/ 111A as deduction up to the basic tax exemption limit is allowed
Hi Rachana Thanks for tons of clarifications. T/O reqd =10Cr. Want to know how can I prepare myself for Tax audit and books of A/C. I was told that because all demat F&O transitions happen online and all reports are available in digital form it's easy to maintain books of a/c. I use a Zerodha trading platform. Can you have a video on how to prepare books of a/c and prepare P&L statement and balance sheet. Also one more question on Advance Tax. How do you accurately predict your15%,45%,& 75% income on 3 adv tax dates. In F&O you are not sure how much profit or loss you will be making at the end of the year. Sorry for a long comment!!!
For call option you have paid the premium and hence it will not be taken for calculation of T/o... As per literal interpretation of the law you have to add premium received on sale of option but you are paying premium and hence call option is wrong!!
Option maine jiss price par becha 200 Aur jitne par square off kiya 60 Meri jeb mein paisa aaya 140 Turnover bana 340 Premium received while entering a position + profit or loss after exiting position = turnover Waah waah waah ye kya system hai bhai Mera desh badal raha hai peeche ho raha hai. Oh sorry pinned comment nahi padha tha. Mera desh badal raha hai aage badh raha hai
Maam now 1 ammendment has come in guidance note regarding this. We will be very happy if you will incorporate that ammendment in this video. now the turnover in case of options will be changed in your examples. Thanks from Hisar.
Superb explanation mam ! I never miss your videos. I was looking for turn over calculation here and there,and I were not able to figure out. But this video had cleared all the doubts, and more importantly it came on right time. Thank you so much. And would love to learn about presumptive taxation.
pls make a video clarifying when to go for tax audit and when not needed for salaried person doing f&o and stocks trading longterm and shortterm and intraday....
Is tax audit applicable if turnover is less than 10 Cr but their is a net loss or profit is below 6% or 8% of turnover? Considering assessee have business income only through FNO trading.
@@ashishmhetre1773 tax audit will be applicable if last year u have declared income under presumption taxation scheme and in current year u are declaring less than 8%/6% or loss and ur income is above BEL then in such case tax audit will be applicable
@@reddybhargavipuredi3389 thanks for this. But I need more info. Last year I didn't do any FnO trading. I had filed ITR-2 last year. So, how do I know whether I had opted for presumptive or non-presumptive taxation?
thanks a lot ma'am... I have been reading everywhere about F&O turnover concept but couldn't understand and you taught it in very simple way.... thanks a lot
Good informative videos. And please also elaborate the reverse trade (3 option) in calculation of Turnover, so that many of us also get and understand the concept fully
I have learnt all these things, but the confusion is in the presumptive taxation only (specifically for salaried & F&O). Hope you will explain in next video. Waiting.
In this case , you need to show minimum 6 % profit in F&O ,Plus usual salary income. But if you show profit below 6% (mostly happen when F&O is in Loss) .Then you need to Tax audit done by CA
So, If I incurred an FO loss of 100000/- and have salary income & other income as well. and turnover as per this is 1200000/- then would I need to get the tax audit done in order to adjust this loss with other income???
zerodha, groww has turnover filled for us in FY. so can we use it or it may be wrong? Rachana mam, kindly confirm whether can we use the turnover mentioned by Groww, Zerodha or need to calculate manually
Why you did not consider the lot size while calculating the options turnover ? For example, Nifty 16000 strike call premium is 300, but lot size will be 50. So total buy value will be 15000. At the time of square off, premium received is 400, again lot size 50, so total selling value is 20000. In this case turnover should be (20000 + 5000) = 25000 right?
Hi Aaroh, lot was not considered for the sake of simplicity, however if we consider lot, below will be the turnover calculation: Say for our case 1 under option seller (from 09:08 to 10:28), The Gross profit will now become -1000*50= -50,000. And the premium recieved will be 300*50= 15,000, hence net profit will be -35,000. So turnover will be premium (15,000) plus absolute net profit (35,000) which comes to 50,000.
I am new for fno options. Just play with 2.5L as training. Yesteray my profit was 2670 through option buying. After taxations I have got just 137. Government is just killing public. I put all efforts simply some guja... people are eating
I have a question - For calculation of turnover on Option, do we calculate on script basis, day basis, transaction basis? e.g. 15000 CE Bought and Sold 2 times in a day, one lot of 50 each time - Day 1 : made profit of 100 from first round transaction, and loss of 100 on second transaction. Hence day's PnL = 0 The same was done on Day 2 as well but on 15500 CE. So - (ignoring the receipt of premium on sale of Option) 1) On Script Basis : 100 - 100 + 100 - 100 = 0 2) On Day basis : 0 + 0 = 0 3) On Transaction basis = 100 + 100 + 100 + 100 = 400
I'm confused why she's saying if 2000 points difference in strike price turnover is 2000. Turnover will be 2000*50 or 2000*25 for Nifty and Bank Nifty respectively on sale of options.
Mam URGENT request last week new guidline came for calculating turnover for options 👍🏼 this is good news . Now turnover is only total sale amount minus purchase amount ,this will not inflate turnover now. calculation has changed in 8th notice from this year ICAI has issued notice
Mam, I have one question if you could clarify please, In case of options,isn't lot size is taken into consideration, If yes then we will have to multiply premium value with lot size (50 or 25),then the turnover will be much higher when we add both of them, that's how zerodha is calculating it and showing turnover as.. Please clarify.. Thanks in advance.
What is turnover of option buyer... if someone buy 17300 call option 20 lots(1000 shares) at rs 20 total buy rs(20000) And sell at rs 22 so sell value(22000) So what is the turnover
Everyone's question who came to see the video is what all are allowed expenses which can be deducted from profits? That's the million dollar question. The info provided here can just be downloaded from the back end of any broker.
Hi Mam , Would be more than happy to have your contribution just incase these , F&O is sold before the expiry(Probably intra day F&O as well) and their tax audit applicability just like this practical way . 🤞
I download my statement from Zerodha, turnover is showing for options only not for the future, and options turnover is calculated as the total profit & loss only. But, as per my understanding, we need to add the total sell value with the total profit & loss. Please help me with that ? 2- When i enter my loss with a minus in business for options- It doesn't get calculated for losses. Does it carry forward or not and why its not calculated ?
While trying to file through quicko i am being asked to opt in or opt out of tax audit. I have a small turnover of 15700rs.I did some small intraday trades in last year. Overall it is loss and quicko is telling tax audit is applicable for turnover less than 25 lakhs if the business is reported as loss.
How about the taxes for the transactions on F&O, Equity, Derivatives- LTCG and STCG etc... these are the costs involved in conducting the transactions. What is the tax treatment. Can you also please make a video on the filing part of both equity, F&o and Futures transactions. The key and important points to be noted for tax filings. Also, If Tax audit, who has to do it? is it a CA,in case if the turnover is more than 10CR? thanks a lot.
You are great Rachna. Simply superb, I must say. I am poor in understanding accounting aspects. Kindly clarify in simple terms: I am a salaried person (7 lakh) having LTCG - short as well as long-term gains (3 lakh) from sale of shares. Without understanding the implications, I traded in FnO and incurred huge loss of 2.5 lakh last year. As understood, my earning shall be treated as earning from business income and it would be ITR3 that I have to file. Please advise: Whether, I shall be able to get benefit of 80C, Standard Deduction, 50000 on Bank Interest (boing senior citizen) etc under salary head or not, besides application of a fixed 15%/10% Capital gains tax from sale of shares OR Whether all amounts shall now be added up & I Tax shall be charged on full amount as if all income being income from business due to my additional F&O trading. Please HELP. Iam WORRIED. Regards
Thank Ma'am! I want to know one thing.... Does guidance lines of ICAI issued on 19-08-22, page no 17 of PDF.... affect the calculation of turnover of options ...
Great Video Sir. When Assessee is a Partnership Firm... then Is Gross receipt for 5% threshold calculated on total total fund inflow in form of cash and bank? or on Turnover? Same is 5% Gross payment on total fund outflow? or on Total Turnover?
