hello,
can anyone who trade mcx options tell me that what kind of profit one need to look for per option to make any sense trading these options.how is the taxation works out in mcx option as turnover per option contract is on higher side. so even if one pay the tax without audit @6% of turnover then what should be the profit per option to have meaningful income in hand after tax?
Income from F&O (Equity and commodity) is considered as non-speculative business income. You have to combine all your income and pay tax as per your tax slab. An audit is required if profit is less than 6% of turnover.
In trading I don’t think you can really look at it as how much profit per option trade. The best trades are usually those where you book a loss fast. So best not to look at it in terms of profit per trade and look at overall profitability, make more when you win and lose less when you are on bad trades. For taxation check this
Btw, if you want to learn in details on taxation when trading, check this.