I’m trading over the last 2 years. My volumes were very less and infact negligible, so never bothered about taxes. Recently a few months before I tried futures trading.
This year my futures turnover is 10.72 lakhs and profit is 5.1lakhs and Charges around 23k.
I’m attaching the screenshot for better understanding.
I’m scared of the taxation, as somewhere I read that taxes will be calculated based on the turnover and not on profit. That means I will end up paying too much of taxes. Please guide me appropriately as to how to pay my taxes and how it will be calculated.
Im a self employed person and work as a consultant for a couple of firms and my income this year from that will be around 4 - 5 lakhs.
Turnover is needed for applicability of tax audit and not taxation and the turnover limits are pretty higher ( Till 10 crore, there’s no requirement of tax audit as such)
So nothing to worry about.
We hope your profits and turnover multiply many more times
Do consult with your CA. If you have self-employment income, you can show certain expenses to reduce your tax-outflow. You can also make use of certain deductions like 80C, 80D to reduce your gross income to determine tax
Taxes need to be paid only on the profits that you earn. The turnover is only used to calculate your audit applicability and in the case of trading audit is applicable when your turnover exceeds ₹10Cr.
Yes, the tax will be applicable to your total income as per the applicable slab.
