Hi all, I have a query.
I am basically a scalper and does major scalping in nifty and banknifty. I usually takes 7 to 10 trades with a lot size of (10-12) in nifty and 20 -25 in BNF.
I usually scap around 5% and close my positions on a same day.
My question is
I understand that the turnover is calculated as total sell side + absolute value of profit. As my number of trades are frequent with some bigger lots I would be having more turnover running into some 7 crores by year end. But my profits are less compared to these turnover. (Assuming it is less than 1%)
From taxation perspective what could be the impact if I take more trade with less profits. What would be the impact of such higher turnover in taxation.
Does anyone have any practical example?