The calculation of turnover in my comment is as per the icai guide. It clearly mentions the sum of favourable and unfavourable differences. It also mentions that in case of options, premium on sale of options is to be added to the absolute profit to calculate turnover.
Summarising:
Turnover for Futures = Absolute Profit
Turnover for Options = Absolute Profit + Premium on Sale of Options
If you observe the turnover calculation in the tax p&l statement of zerodha, it is as per the above summary. In case of Options, Sales is added to the Absolute profit to calculate the turnover.
If turnover was only 18 lakh and total profit was only 28k (from trading activity) and total income is still less than income tax filing exemption limit - 3 lac. - (case of senior citizen) for year FY18-19 - do we need to have tax audit ?
Hi,
Tax Audit is not applicable since the total income is less than the basic exemption limit and the trading turnover is less than INR 1 Cr.
For FY 2018-19, the IT Department has started sending out emails under voluntary compliance scheme to the taxpayers who have done trading activity but not filed the Income Tax Return. The IT Department has started this campaign to provide an opportunity to taxpayers to validate the information and avoid tax notices.
If you have received such email, you need to login to your income tax e-filing account and validate the transactions on the e-compliance portal. If you validate such transactions, filing ITR is not mandatory.
However, it is always a good practice to file your ITR. In case the total income is less than the basic exemption limit you can file a Nil return.