Comment on Classifying Your Market Activity

S.N Kannan commented on 19 Jul 2018, 10:47 AM

Dear SIr
I do trading in the Futures (F&O) market and have been filing ITRs under business income. For “Nature of Business”, as F&O trading is not specifically shown, I have entered code “0809-Financial Services Sector-Others”. These codes have expanded considerably from current year.
Pls advise which code to use for PURE F&O TRADING activity alone. Should I use 13010, or 13014 or 13018. Or can I simply use 16019.

Also in P&L, I have been showing the total of favourable transactions (i.e profits) as “SALES” under Item [1A(i)] and total of unfavourable transactions (i.e losses) as PURCHASES under item [6], thereby arriving at gross profits and deduct some basic expenses (telephones, internet, etc) to arrive at net profits.
Instead of this, can I show the gross profit (i.e net of profits & loss transactions) under Item [1A(iii)] without the need for PURCHASES, etc ? (expenses will continue to be shown under relevant heads)

Thanks

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