FNO turnover calculation for tax calculation

Taxation
1

hi,

I need a couple of clarifications on FNO turnover calculation and tax audit applicability.

When calculating Options turnover for tax calculation, do I need to consider the charges or not?

For example, if I bought options at premium of 10K and incurred charges of Rs 200 and then sold it at 12K and incurred charges of 200 Rs, is my turnover calculated as 2000 (12K - 10K) or is it 1600 (11.8K - 10.2K)? Similarly, if I take the reverse example, bought at 12K and sold at 10K, is my turnover calculated as 2000 (absolute of 10K-12K) or is it 2400 (absolute of 9.8K - 12.2K)?

Also, if my turnover is less than 10cr, since all FNO trades are in digital, will tax audit be applicable, irrespective of % profit ?

Thanks!

1 Like
2

@Quicko Can you.

4

Hey @bhaskids,

The turnover in both these cases would be ₹2000.

In the case of digital transactions, a tax audit is applicable when the turnover crosses 10 crores.

Hope this clarifies!