Turnover and tax

F&O
1

Dear @Quicko , @nithin , I have a question regarding turnover and income tax of ‘futures & options’. IF I HAVE OPEN POSITIONS IN FUTURES(long and short side) AND OPTIONS(short side) on 31st March 2020 and the same is square off in April 2020. Then how we calculate the following:

  1. Profit for financial year 2019-20
  2. Turnover for financial year 2019-20
  3. Profit for financial year 2020-21
  4. Turnover for financial year 2020-21

Thanks

2

You can mark to market all positions to March 31st closing price to show P&L for last year. That closing price can be used as the new entry price for the next year. By the way this is how Console Tax P&L calculates it as well.

1 Like
3

Dear @nithin ,
Thanks for your reply regarding p&l, will you please guide me about turnover in above case.

Thanks

4

Turnover = gross sum of P&L, so turnover will automatically change to the P&L based on March 31st closing.

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5

What I the tax deducted for F&O Trading…? Intraday…

6

In the case of F&O trading, the gains realized fall under PGBP (Non- speculative income). Net profit is considered while filing ITR. For details refer to Varsity Turnover, Balance Sheet, and P&L – Varsity by Zerodha and Quicko Tax on F&O - Futures and Options Trading | Learn by Quicko.

Also, taxation on F&O and Intraday trading is explained in this post :

https://tradingqna.com/t/taxation-on-intraday-futures-trading/98532