for taxation what is this absolute sum of settlement?
I guess you are referring to calculating turnover while filing for your income tax, in case if you are trading F&O. We have a detailed explanation on this blogpost.
Assuming you traded in a financial year
1. Nifty Dec futures, total profit on this contract from all trades done = + 1lk
2. Nifty Jan Futures loss = -2lks
3. Tata steel Feb futures, profit = 4lks
So your turnover can be considered as absolute sum of the above three = 1+2+4 = 7lks.
By absolute sum it means,even if there is a negative value, you consider it positive.
yes for filing income tax ,thanks nithin.now got cleared with the turnover.but still few doubts,
1.do i need to consult a CA or directly can fill those forms? as im new for filing tax for myself,previously my employer would do that.
2.incase of negative profits or losses do i need to still pay tax?and if yes then will that affect when im going for getting some loans?as they all ask do you file IT returns.
3.what is the percentage of profit should i pay as tax?
awaiting ur valuable reply.
Vikram, check this blogpost : http://zerodha.com/z-connect/traders-zone/taxation-for-traders/taxation-simplified, has everything you need to know.