Turnover for f&o (options specifically)

Taxation
1

for purpose of calculaing turnover for Non speculative transactions(F&O)

  • The total of favourable and unfavourable differences shall be taken as turnover
    -premium received on sale pf options is also to be included in turnover
    -in respect of any reverse trades entered, the difference thereon should also form part of the turnover

What is the 3rd point actually mean? can anyone give an example?

thanks

2

@Kushal_Salvi

It refers to selling the future or entering the opposite side of a currently held position.

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3

@Quicko, can you please explain the 3rd point in detail, on how it should be interpreted?

4

Hey @Dkarthic ,

The third point you are referring to can be explained with a simple example. In a reverse trade, the option for example is sold at a premium of INR 10. The option is purchased at INR 8, which leads to a profit of INR 2. In this case, the turnover of options is INR 12 (profit+ premium the option is sold at)

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