Tax turnover for options expiring worthless


I am trying to calculate the turnover for F&O trading, and my strategy involves buying cheap out of the money options which almost always expire worthless. How would the turnover for taxation be calculated in this case? Would it be

  1. zero, or
  2. the option premium, or
  3. the option premium + the loss, in other words {option premium + (option premium - 0)}, which is 2xOption premium?


In case of Option , to get books Audited you need to add up Option premium + Settlement Loss. The third option is correct.

To prepare P & L you can take positive trade as revenue and negative trades as cost.



Thank you so much for helping me. I just noticed that Q in Zerodha also calculates and shows turnover for F&O. Right now I can see the turnover to be equal to the option premium - the second option that I mentioned. You can also see that in the screenshot below:


This corresponds to the options that I purchased but did not sell as they expired worthless.
So is Zerodha’s calculation of turnover incorrect?

Thanks again for helping out.