Tax Related Query

I make loss of Rs. 28000/- (total turnover of Rs. 30000, profit of Rs. 1000, loss of Rs. 29000).
After this i switch to MCX and get a profit of Rs. 500000/-( total turnover of Rs. 1500000, profit of Rs. 1000000, loss of Rs. 500000).

How the tax be implied?
How is the turnover computed in terms of derivatives?

Is the audit required for currency market as the trader is making loss in it (proft is less than 8% of turnover) ?

Is the audit required for commodity market?

Is the audit required at all?

Can loss of Rs. 28000/- be offset against profit of Rs. 500000/-, as far as I know, in currency market no STT/CTT is deduced whereas in commodity market, CTT is deducted ?

All the transactions in F&O whether it is related to NSE, BSE, MCX-SX, MCX and NCDEX will come under Business transactions. So Income or loss in this will be net of all the F&O transactions.

Audit is required in the following 2 cases:

a) When the turnover is more than 1 crore 

b) When the turnover is less than 1 crore rupees AND the profit declared is less than 8%.

How to compute Turnover?

  • For F&O (Equity, Currency, Commodity) — absolute sum of settlement profits & losses for F&O) per scrip and the sell side value of option contracts
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