i m trying to select between futures n options for making direction based trades…like if price expect to go up then buy future or buy long call…i want to know from income tax audit purpose will future trading create more turover or will option trade create more turnover… please give inputs as no calculator is avlbl for turover calcultion…thanks
As per latest amendments, there is no difference in TO calculation.
it is the absolute sum of settlement profits and losses for each trade.
thank you…but CA says different method which is based on premium n many other factors…do u have any link to latest amendments from any govt website which say the correct process to calculate turnover…thank you again
used to be so for a while then it got changed back to the old way of calculating turnover (sum of profits & losses).
I don’t have any link to gov sites but this might help:
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Income tax Act is silent on the calculation of turnover. So we rely on the guidance notes issued by ICAI.
Earlier option premium collected at the time of sale was to be added to the absolute difference of profits and losses.
But now it’s changed to just absolute differences.
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thank you everyone…my question was difference in tturnover between futures n options trade…so is it ok to confirm that now turnover is simple difference of a trade…whether it is from future or whether from option…it should not matter…
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