I have few questions regarding option trading.
I have been trading options from last one month, yet my turnover at zerodha for options trading has reached to 15 lak!
At the end of financial year (31.3.2019)it will surely reach above 2 caror Mark.
Regarding that if I need tax audit, what should I do/maintain?
How a tax auditor will fill the Itr? It could be done online?
What’s books of account?should I print and keep file of contract notes?? What else I should be maintaining ?
Looking at nifty and banknifty’s daily options volumes ,isn’t is very easy to surpass 2 caror turnover mark within a year?
If you are a option trader and your turnover goes above 2 caror mark …plz comment
Mate I am assuming you are aware of actual meaning of turnover.
Turnover literally means actual profit/loss incurred in trade.
If I bought one lot nifty At 10000 and sold it at 10050 then my turnover will be 3500.
Turnover is not actual contract value it is profit or loss incurred in particular trade.
But this logic not applies for delivery based equity trading .
Suppose one takes delivery of one lakh worth
of script . And very next day he gets rid of his position at BEP It will translate into turnover worth of two lakh rupees .
As far as audit is concerned if it is applicable on you get in touch with some charted accountant the will brief you rest of process .
Hey, after reading this page https://zerodha.com/varsity/chapter/turnover-balance-sheet-and-pl/
I better get to know about turnover of Options
It’s very easy to surpass 2 caror turnover mark in options within 1 year limit
I had to raise the question!