@ShubhS9 : Also, brokerage charges would be saved right if it expires OTM?
Yes, if Option expires OTM, there will be no brokerage charges.
@ShubhS9 Will this not be an issue during tax calculation if we dont square off OTM?
There will be no buy back price, only the sell price in the records.
Turnover for F&O is calculated as below:
The absolute sum of settlement profits & losses for F&O) per scrip and the sell side value of option contract.
You can check out more details here.
Had a question on the debit balance calculation. Is it based on the debit balance at the time of market close or post the day end calc.
For eg. If I have a Total margin of 11L (collateral margin of 10L and cash margin of 1L) and at 330pm I have OTM calls and Puts (worthless trading at 0.05) which require a margin of 9L.
At 330 my account will have a debit balance of 3.5L (9L * 50% - 1L cash margin). But post day end Calc the account will have a credit balance of 11L
Will I be charged interest on this debit balance or will the calculation be based post day settlement when my margin used will become NIL (due to OTM options expiring)
The interest will be charged on the debit balance once the trade process completes (post-day settlement). For the above example, there will not be any interest charges on your account.
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Hi @ShubhS9 in last week of March 22 if I sell ten lots of BNF45000 CE 29 dec22 expiry and receive rs 4.5 lac options premium and carry my position into Apr22 will this entire premium received be taken to be my profit for income tax purposes for FY 21-22 or only the MTM on this position as on 31 Mar will be taken as profit for tax purpose for FY21-22?
(I know this strike may be illiquid,have just taken a far strike for example )
Will there be any other extra charges,
if we didn’t closed the Index/stock option positions and let it expire worthless ?
There will be no extra charges as the position is OTM and expired worthless.
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Sure @ShubhS9.
@ad9 For the purpose of Income Tax, realized profit/loss needs to be reported in the Income Tax Return. Thus, neither premium nor MTM position would be taken as profit for tax purpose for FY 21-22.
Let us know if you need any further help, would love to assist you with it. 
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Hi @ShubhS9
what happens if I have ITM buy position at 1200 and if the option price moves to 3000 or 4000 and no buyers…On the expiry day what happens if i cant sell
Explained in detail here:
Index Options as well.
@ShubhS9 Thanks bro, if my P&L is 1000 suppose, then will the STT is already included or calculated separately
when I sqaure off?
The P&L you see is excluding the charges. You can easily calculate charges using brokerage calculator: Brokerage calculator – Zerodha
@ShubhS9 Zerodha please advise
Index options are cash settled please clarify this means whatever our P&L is at expiry same with some charges and all will be there , but no huge debt like it happens in physicals settlement in stock, e.g. if index option buy/sell position expire ITM whatever intrinsic value it will have multiplied by quantity (e.g. BN 25 or 50 depending on lots) that will be are net loss + charges and all
Also does CTM DNE thing applies to index options - even the slightest ITM (one stike ITM from ATM for CE and PE ) will also be cash settled in index? And ATM strike at expiry closing bell, will it be considered any intrinsic value or that also is treated like OTM i.e. worthless