Tax Calculation for Options

General
1

Hi Zerodha Team,

Could you please help me to calculate tax for Options.

Suppose, In Tradewise Turnover Excel sheet. Confused over the calculate the Tax.

Turnover: 350000    

Turnover with sell value: 500000

But here i have noticed that Turnover (350000) included my loss also means profit (25000) + loss (325000) = turnover (350000).

1. So, what is turnover value here ?

2. How to calculate tax here for this (how much tax will be) ?

2

Hi Kernel,

Turnover is calculated only to check if you need a tax audit or not, taxes payable has nothing to do with the tradewise turnover.

1. Your turnover would be 5,00,000.

2. You will have to pay tax only on the net profit. As per your question you have incurred a loss of Rs.3,00,000 in options.

If you want to understand this in detail, here is the link.

1 Like
3

Hi Kernel,

As said above you don’t need to calculate turnover for paying taxes.

Since you have incurred loss of Rs.3,00,000, you need not to pay any tax on this amount. This loss of Rs.300,000 can be carried forward for 4 subsequent years and this loss will reduce any profit you have earned while trading in option in these 4 subsequent years by Rs. 300,000.

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4

Thanks Roopa.

5

Thanks Uttkarsh for clarification.