I have an open options position at the end of the year where I have sold a 20500 ce of nifty for apr 2025 , how will the premium of 1.5 lakh received be taxed at the end of fy 31/3/25 .
People say that whole 1.5 lakh will be subject to tax and next year when you square the whole premium will be considered loss @Quicko
This is a little urgent if anyone can please reply
If you follow the accrual method, the ₹1.5 lakh premium will be taxed this year, and any loss next year will be adjusted. If you follow the realized method, there’s no tax this year—you’ll be taxed only when you close the trade. Check with your CA to avoid unnecessary taxation.
@Quicko Can you confirm?
This.
Hello @niftymonk @Rushang_Mehta
In our opinion, any premium received will be included to calculate profit or loss from Option transaction and will be taxed only when you square off the transaction.
Thus, there will be no tax liability in case of a open position as on 31st March.
Thank you.