What is acceptable turnover from a retail investor, I mean one can scalp say 5 lakhs worth of options daily which will make him cross turnover of around 12cr !
Is this even legal?
The definition of SEBI turnover is different from turnover calculations for the purpose of income tax. Check with your own CA.
Turnover to get tax audit is defined under guidance note issued by ICAI which is apex body for accounting in The country. A day trader turnover normally crosses the limit due to frequency of trades and as per guidelines its trade wise turnover.
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@TAXIQ.IN: Thank you very much for this. If I understand correctly, the section 5.14 applies to most situaitons ?
Yes Mr Banerjee
Yea so @Techie, as @TAXIQ.IN pointed out - your net PNL in your FnO trades will be used as a measure of turnover when filing PNL. So in case you do make more than 1 cr profit, do hire a CA. It would be well worth it !!
Its a Trade wise turnover for example if you buy nifty 5 times in a day and sell , then individually you need to add up turnover of all five times positive or negative.
If someone is high volume trader where profit / Loss are substantial , our advice is to get books audited and file.
Yes I think I misinterpretted. Its the ABS(positivePNL)+ABS(negativePNL) - so even with 0 profit but 50 lac loss with 50 lac profit, you are in need for audit.